Union Bank of India has announced the exercise of its call option to redeem two series of Basel III compliant Tier-1 bonds. The first series, with an issue size of ₹2,000 Crores, will be redeemed on 22-11-2026. The second series, valued at ₹1,500 Crores, is scheduled for redemption on 20-12-2026. This move reflects the bank’s active management of its capital structure and borrowing costs.
Union Bank of India Exercising Call Options on Bonds
Union Bank of India has formally issued a notice for the redemption of its Basel III compliant Tier-1 bonds. This decision to exercise the call option, as per Regulation 30 and 60(2) of SEBI (Listing Obligation and Disclosures Requirements) Regulations 2015, signifies the bank’s proactive approach to managing its financial obligations and capital structure. The redemption affects two distinct series of bonds.
Bond Series and Redemption Details
The first series of bonds, identified as Basel III compliant Tier-1 Series XXXII with ISIN number INE692A08169, has an original issue size of ₹2,000 Crores. These bonds carried a coupon rate of 8.70% and their due date for redemption, as per the call option exercised, is 22-11-2026. The payment for this redemption is scheduled for 21-11-2026, with a record date of 07-11-2026.
The second series of bonds, designated as Basel III compliant Tier-1 Series XXXIII, with ISIN number INE692A08177, had an issue size of ₹1,500 Crores. These bonds offered a coupon rate of 8.40%. The due date for their redemption under the exercised call option is 20-12-2026. The payment date is set for 19-12-2026, and the corresponding record date is 05-12-2026.
Information Memorandum Clarification
As per the Information Memorandum, if the Call Option Due Date (also the last Coupon Payment Date in case of call option exercise) falls on a non-business day, the Call Option Price will be paid by the Bank on the immediately preceding Business Day. This payment will include any accrued interest on the Bonds until, but excluding, the date of such payment.
Source: BSE
