The State-owned lender, Union Bank of India, is planning to raise $ 200 million from the overseas market in the next couple of months through a bond issue. The funds to be raised through the route of medium term note (MTN) would be used by the bank to fund the operations of its Hong Kong branch. The capital would be raised either in dollar or in Euro Franc.
Also, the bank is expecting to receive a sum of Rs 1150 crore in the form of preferential equity from the government which will increase the government’s stake in the bank to 58% from the existing 55%. The Cabinet has already approved the capitalisation plan of the Union Bank, which received Rs 111 crore about four months back as first tranche. On FPO plans, Nair said, the bank has no plans as it will be in a comfortable situation.