United Bank of India to issue Perpetual Debt Instrument up to Rs.300 Crore

United Bank of India plans to issue Unsecured, Subordinated, Non Convertible, Perpetual Debt Instrument (Series-I) of Rs.10,00,000/- each at par for an amount of Rs.200 crore with green shoe option of another Rs.100 crore on private placement basis for augmentation of its tier-1 capital.

The securities have no Put option, but have a call option after 10 years with prior approval of RBI.

The securities have a coupon rate 9.27% p.a and the interest payment will be done on annual basis.

CRISIL and CARE have assigned AA rating for the instrument.

The United Bank of India stock was trading at Rs.75.50, up by Rs.0.90 or 1.21%. The stock hit an intraday high of Rs.77.30 and low of Rs.74.25.

The total traded quantity was 2.77 lakhs compared to 2 week average of 1.02 lakhs.

Source : Equity Bulls

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