Union Bank of India, one of India's largest state-run banks, announced that it has raised an additional capital of Rs 140 crore through issue of subordinated perpetual bonds.

The issue opened on March 19 and was closed on March 25, as against original closure date of March 26, 2009.

The bonds allotment will be finished on March 30, 2009.

The bonds carry a coupon rate of 9.10%, which will be payable on an annual basis.

The Bonds hold step up coupon rate of 0.50% p.a. payable yearly for further life that will be exercised only once during the instrument’s whole life, in conjunction with the Call Option, after lapse of ten years from the date of issue.

Brickwork rated the bonds as "BWR AAA", while CRISIL provided them "AM+/Stable" rating.

At 02:11 p.m., the stock of the bank was trading at Rs 144.75, up 3.39% on the Bombay Stock Exchange (BSE). The stock hit an intraday high of Rs 146.90 and low of Rs 141.10.

The total traded quantity was 81300 compared to 2 week average of 145143.