Union Bank of India announced the successful issuance of Long-Term Bonds totaling ₹7,500 Crore aimed at financing infrastructure and affordable housing projects. The base issue size was set at ₹3,000 Crore, supplemented by a Green Shoe option of ₹4,500 Crore, finalized on a private placement basis. The 10-year bonds carry a coupon rate of 7.16% p.a. and have secured high credit ratings from both CARE and ICRA.
Union Bank of India Long-Term Bond Issuance Details
Union Bank of India has formally disclosed the details concerning its recent issuance of Long-Term Bonds designed to bolster financing for crucial infrastructure and affordable housing sectors. The total aggregate size of the bond program amounts to ₹7,500 Crore. This was structured with a base issue size of ₹3,000 Crore and an accompanying Green Shoe option of ₹4,500 Crore, all executed through a Private Placement mechanism.
Key Financial and Structural Attributes
The instrument detailed is a Senior, rated, listed, unsecured, redeemable, and fully paid-up Non-Convertible Debenture. Each bond carries a Face Value of Rs. 1,00,000/- (Rupees One lakh) per Bond.
The critical dates and terms associated with the issuance are as follows:
- Issue Opening Date: 20.03.2026
- Issue Closing Date: 20.03.2026
- Allotment Date: 24.03.2026
- Redemption Date (Maturity): 24.03.2036
- Tenor: 10 years
- Coupon Rate: 7.16% p.a.
- Interest Payment Frequency: Annually until redemption
Credit Rating and Listing
The bonds have achieved high credit ratings, indicating strong stability and low credit risk. The Accepted Bid value for the issuance was Rs. 3000 Crore.
The instrument has been rated as follows:
- CARE Ratings Ltd.: “CARE AAA/Stable”
- ICRA Ratings Ltd.: “ICRA AAA/Stable”
The bonds are Unsecured and are proposed to be listed on the National Stock Exchange (NSE). Trading and issuance are restricted to a dematerialized form only, utilizing NSDL and CDSL as the official depositories.
Source: BSE
