Union Bank of India raises Rs 200 crore

Union Bank of India has announced that the Bank has raised additional capital to the extent of Rs 200 crores by issue of Subordinated Perpetual Bonds. The issue opened on June 08, 2009 and was closed on June 13, 2009. The Bonds are rated as "BWR AAA" by Brickwork and "AA+/Stable" by CRISIL. The Bonds carry a coupon rate of 8.85% per annum payable annually. The Bonds have step up coupon rate of 0.50% p.a. payable annually for further life which will be exercised only once during the whole life of the instrument, in conjunction with the Call Option, after lapse of ten years from the date of issue.

The allotment of the Bonds will be completed on June 16, 2009, the deemed date of allotment.

The stock closed the day at Rs.231.35, up by Rs.2.50 or 1.09%. The stock hit an intraday high of Rs.240.80 and low of Rs.226.25.

The total traded quantity was 450355 compared to 2 week average of 198455.

Source : Equity Bulls

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