Union Bank of India Approves Rs 10,000 Crore Fundraising Plan

State-owned Union Bank of India on Tuesday approved a proposal to raise Rs 10,000 crore to fund its business growth. The plan includes raising equity capital up to Rs 6,000 crore and issuing Basel III compliant AT1 and Tier 2 Bonds not exceeding Rs 2,000 crore each.

PTI | New Delhi | Updated: 11-06-2024 19:13 IST | Created: 11-06-2024 19:13 IST
Union Bank of India Approves Rs 10,000 Crore Fundraising Plan
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In a significant move aimed at bolstering its business growth, Union Bank of India, a state-owned entity, announced on Tuesday its approval for a substantial Rs 10,000 crore fundraising plan.

The bank's board has greenlit the raising of equity capital up to Rs 6,000 crore, which will be facilitated through various public issuance methods, including further public offers, rights issues, or Qualified Institutional Placements (QIP). This strategic initiative will be subject to the necessary approvals from government and regulatory bodies, as well as shareholder consent.

Additionally, the board has sanctioned the issuance of Basel III compliant Additional Tier 1 (AT1) Bonds and Tier 2 Bonds, each not exceeding Rs 2,000 crore, to be included in the overall Rs 10,000 crore financing objective. These bonds may potentially be denominated in foreign currencies, enhancing the bank's capital raising flexibility.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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