United Bank to issue 10-year bonds

United Bank of India will issue 10-year bond at a coupon rate of 9.20 per cent by the end of December this year in order to augment its Tier II capital. The bank has appointed IDFC Ltd as the arranger for its proposed Tier – II bond issue.

The bank plans to raise about Rs 100 crore through these non-convertible bonds. The bond issue will have green shoe options to raise additional Rs 100 crore on private placement basis, said a press statement issued by the bank.

United Bank's capital adequacy was at 12.95 per cent as on September 30, 2011