Mumbai: Union Bank of India has successfully raised ₹3,000 crore through the issuance of long-term bonds to finance infrastructure and affordable housing projects, reflecting strong investor confidence in the bank’s financial strength.
The bond issue witnessed a 3.12 times oversubscription, with bids pouring in from institutional investors across the market.
Key Highlights of the Bond Issue
- Issue Size (Accepted): ₹3,000 crore
- Total Bids Received: ₹9,379.82 crore
- Oversubscription: 3.12 times
- Coupon Rate: 7.16% per annum
- Issue Type: Long-Term Non-Convertible Debentures (NCDs)
- Number of Bonds: 3,00,000 (₹1 lakh each)
- Issue Date: March 20, 2026
- Deemed Allotment Date: March 24, 2026
- Platform: NSE Electronic Bidding Platform
The issue also included a Green Shoe option of ₹4,500 crore, though the bank opted to retain the base size.
Read also: Union Bank of India Gets ICRA AAA (Stable) Rating for ₹10,000 Crore Infrastructure Bonds
Strong Investor Demand and Oversubscription
The offering attracted 48 bids from Qualified Institutional Buyers (QIBs), indicating robust demand for the bank’s debt instruments.
Despite receiving bids worth nearly ₹9,380 crore, the bank accepted 14 bids totaling ₹3,000 crore at a competitive coupon rate of 7.16% per annum. This strong response highlights market confidence in Union Bank’s stability and growth outlook.
Focus on Infrastructure and Affordable Housing
The funds raised through this bond issuance will be deployed toward infrastructure development and affordable housing projects, both of which are key pillars of India’s economic growth.
This initiative is expected to:
- Support large-scale infrastructure expansion
- Boost affordable housing availability
- Contribute to job creation and economic activity
- Align with national development priorities
Regulatory Compliance and Transparency
Union Bank of India disclosed the details of the bond issuance in compliance with Regulation 30 of the Securities and Exchange Board of India (LODR Regulations, 2015), ensuring transparency for investors and stakeholders.
Strategic Significance
The successful bond issuance strengthens Union Bank’s ability to fund long-term development projects while maintaining a diversified funding base. It also demonstrates the bank’s ability to attract institutional capital at competitive rates.
At a time when India is focusing heavily on infrastructure and housing, such fundraising efforts play a crucial role in sustaining economic momentum.
About Union Bank of India
Union Bank of India is one of India’s leading public sector banks, offering a wide range of banking and financial services. With a strong nationwide presence, the bank plays a key role in supporting economic growth through financing infrastructure, MSMEs, agriculture, and retail sectors, while actively contributing to government-led development initiatives.
Read also: Union Bank of India Partners with Uttarakhand Power Corporation to Onboard Employee Salary Accounts
