Union Bank of India to raise additional capital of Rs 500 crores

Union Bank of India has announced that the Bank has raised additional capital to the extent of Rs 500 crores by issue of Unsecured Redeemable Non Convertible Subordinated Upper Tier II Bonds. The issue opened on January 19, 2010 and closed on January 22, 2010. The Bonds are rated as "AAA/Stable" by CRISIL and "CARE AAA" by CARE. The Bonds carry a coupon rate of 8.55% per annum payable annually. The tenor of the bonds is 15 years and has call option after completion of 10 years from the deemed date of allotment i.e. January 27, 2010. If the call option is not exercised the bonds have a step-up coupon of 0.50% per year for further life of the bond.

The stock was trading at Rs.260.15, down by Rs.3 or 1.14%. The stock hit an intraday high of Rs.267 and low of Rs.254.15.

The total traded quantity was 67642 compared to 2 week average of 90956.

Source : Equity Bulls

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