Union Bank of India has successfully raised ₹3,000 crore through the issuance of Long-Term Bonds, designated for financing infrastructure and affordable housing projects. The issue, which had a base size of ₹3,000 crore and an option for an additional ₹4,500 crore, saw massive oversubscription. The Bank opted to accept bids at a cut-off coupon rate of 7.16% p.a., reflecting strong institutional investor confidence.
Successful Long-Term Debt Issuance
Union Bank of India announced the successful completion of its Long-Term Bonds issue aimed at funding infrastructure and affordable housing needs. The initial target issue size was set at ₹3,000 Crore, complemented by a Green Shoe option of ₹4,500 Crore. This fundraising effort was conducted through a Private Placement Basis.
Overwhelming Investor Response
The offering garnered substantial interest from Qualified Institutional Buyers, resulting in total bids amounting to ₹9,379.82 Crore. This represented an oversubscription of 3.12 times against the base issue size of ₹3,000 crore, demonstrating robust market appetite for the Bank’s debt instruments. A total of 48 bids were received on the NSE Electronic Bidding Platform.
Allotment Details
Following the strong response, the Bank made the decision to accept bids totaling the base size of ₹3,000 crore. This acceptance was finalized at a fixed cut-off coupon rate of 7.16% p.a. Only 14 bids were ultimately accepted.
Key Issue Timelines
- Issue Type: Senior, rated, listed, unsecured, redeemable, taxable, Long Term fully paid-up Non-Convertible Bonds.
- Accepted Issue Size: ₹3,000 crores.
- Issue Opened On: 20th March 2026.
- Issue Closed On: 20th March 2026.
- Deemed Date of Allotment: 24th March 2026.
- Total Bonds Allotted: 3,00,000 bonds of ₹1,00,000 each.
Source: BSE
