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BUSINESS

Union Bank of India Raises Rs 663 Crore Through Bonds

On Friday, public sector lender Union Bank of India said it has raised Rs 663 crore through tier one bonds to fund business expansion.

On Friday, state-owned public sector lender Union Bank of India said it raised Rs 663 crore through primary bonds to fund business growth.

Union Bank of India said: “The bank has issued unsecured, subordinated, non-convertible, perpetual, taxable, fully paid Basel III Additional Tier 1 bonds (AT-1), which are like Tier 1 capital-eligible bonds” in a regulatory filing. It said the bank had raised a total of Rs 663 crore from bonds.

AT-1 bonds are loss-absorbing under Basel III norms, meaning that banks can write off such investments or convert them into common shares if the RBI approves. AT-1 bonds qualify as core or capital equity.

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