United Bank plans Rs 100-cr bond issue

United Bank of India plans to raise about Rs 100 crore through non-convertible bonds to augment its lower Tier-II capital, according to a company notification to the BSE. The bank proposes to issue unsecured, subordinated, redeemable, non-convertible bonds in the form of promissory notes of Rs 10 lakh each, for Rs 100 crore. The issue has been rated AA+ by Care and AA+/Stable by Crisil.

The bond issue will have green-shoe options to raise additional Rs 100 crore on private placement basis. The bank will intimate the coupon rate and the date of opening of the issue in due course.