Three bond issues of banks will be hit the market Thursday. Union Bank of India has announced two bond issues?perpetual bonds and a lower tier II ? of Rs 200 crore and Rs 400 crore respectively, while Punjab National Bank (PNB) will come out with an Rs 300-crore perpetual bond issue.
Union Bank?s perpetual bond issue has been rated AA+ by Crisil and carries a higher coupon of 9.9% as against PNB?s triple A-rated bonds of 9.75%.
Both the issues have a call option at the end of the tenth year, coupons of which are 10.40% and 10.25% respectively. The closing date for the Union Bank issue is on December 12.