.webp&w=3840&q=75)
On Monday, the state-owned Union Bank of India said that its board has approved a plan which will raise up to ₹20,000 crore by issuing infrastructure bonds. This is done as a part of the bank’s efforts to support development projects in the country.
In a regulatory filing, the bank said that its Committee of Directors for Fund Raising (Non-Capital) has cleared the proposal which will issue long-term bonds in one or more tranches. The funds raised through this will be used to mainly finance infrastructure projects like roads, power, and urban development, in addition to affordable housing initiatives.
Out of the total planned amount, the bank is looking forward to raise ₹7,500 crore before March 31. This include a base issue of ₹3,000 crore and a greenshoe option of ₹4,500 crore. This will give them flexibility to raise more funds depending on the demands of investors. These bonds will have a maturity period of 10 years which makes them suitable for projects that will last long-term.
In addition to this, the board has also approved raising up to ₹5,000 crore through green or sustainable bonds. These bonds will be used to fund environmentally friendly projects like renewable energy and other initiatives that are climate-focused. This shows the bank is moving its focus on sustainable finance.
Furthermore, this move is aimed at strengthening the Union Bank’s funding base and increase its role in financing infrastructure and housing. All while also supporting environmentally responsible projects.
.webp&w=3840&q=75)
