As part of its fund raising plans, Union Bank of India is all set to raise Rs 300 crore in its upper tier.

The bank is expected to make a declaration on this in the coming days.

The bonds will carry a coupon rate of about 11 percent.

Recently, the banking institution finished raising additional capital to the extent of Rs 2 billion by issue of Hybrid Tier I Capital, Perpetual Bonds with a rate of about 11.15 percent.

The bonds are ranked as `AA+ / Stable` by CRISIL & `LAA` with Stable outlook by ICRA.

Mr. M V Nair, chairman and MD, stated, “This is a part of our plan to raise Rs 1,000 crore. We will be raising another Rs 500 crore lower tier capital by the month-end.”

The funds are likely to help maintain the bank's capital adequacy ratio (CAR), which presently stands at approx 12.22 percent and after meeting Basel II norms, it would in the range of around 11.23 percent.

Mr. Nair also said that the bank’s aim was to maintain CAR at 12 percent.