Union Bank to raise Additional Capital

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 for subscription on June 28, 2010 and closed on same day. The Bonds are rated as "AAA/Stable" by CRISIL and "CARE AAA" by CARE. The Bonds carry a coupon rate of 8.48% per annum payable annually. The tenor of the bonds is 15 years and the issuer has call option after completion of 10 years from the deemed date of allotment i.e. June 28, 2010. If the call option is not exercised the bonds will have a step-up coupon of 0.50% per year for further life of the bond.

The stock closed the day at Rs.314, up by Rs.2 or 0.64%. The stock hit an intraday high of Rs.315 and low of Rs.307.90.

The total traded quantity was 51318 compared to 2 week average of 87641.

Source : Equity Bulls

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