Union Bank to raise ₹25,000 crore via bond issue
Union Bank of India is gearing up to raise ₹25,000 crore by issuing bonds, with the plan officially approved on March 16.
The move is split into two parts: ₹20,000 crore will go toward long-term infrastructure and affordable housing, while ₹5,000 crore is set aside for green bonds to back eco-friendly projects.
The bank may explore raising ₹7,500 crore (base issue ₹3,000 crore + greenshoe option ₹4,500 crore) before March 31, 2026.
Breakdown of the fundraising drive
Most of the funds, ₹20,000 crore, are intended for long-term infrastructure projects and affordable housing.
The rest (₹5,000 crore) will be raised through green bonds that help fund sustainable projects under Union Bank's own eco-friendly framework.
Bank's shares rise on fundraising news
This is one of the bank's recent fundraising initiatives. It plans a base issue of ₹3,000 crore (with a ₹4,500 crore greenshoe option) as part of a potential ₹7,500 crore tranche it may explore before March 31, 2026.
It's all part of its ongoing push to find smarter ways to fund growth in infrastructure and housing.
Investors seemed pleased too: the bank's shares went up by 0.82% after the announcement.