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Union Bank to Raise Rs 20,000 Crore via Bonds for Infrastructure, Housing

Union Bank of India's Committee of Directors has approved a plan to raise up to Rs 20,000 crore through long-term bonds to finance infrastructure and affordable housing projects. The bank may explore raising Rs 7,500 crore of this amount before March 31, 2026. Additionally, the committee cleared a proposal to raise up to Rs 5,000 crore via green or sustainable bonds. These decisions were made during a fund-raising committee meeting held on March 16, 2026.

Key Points: Union Bank Approves Rs 20,000 Crore Bond Issuance Plan

  • Rs 20,000 crore long-term bond plan approved
  • Funds for infrastructure & affordable housing
  • May raise Rs 7,500 crore before March 2026
  • Additional Rs 5,000 crore via green bonds
  • Committee meeting concluded in 20 minutes
2 min read

Union Bank of India approves plan to raise up to Rs 20,000 crore via long-term bonds

Union Bank of India plans to raise up to Rs 20,000 crore via long-term bonds for infrastructure and affordable housing, plus Rs 5,000 crore via green bonds.

"issuance of Long-Term Bonds amounting upto Rs 20,000 crore in one or more tranches - Union Bank Circular"

Mumbai, March 16

Union Bank of India on Monday said its Committee of Directors for fund raising has approved the issuance of long-term bonds and green bonds/sustainable bonds to raise funds for infrastructure, affordable housing and other initiatives.

According to a circular issued by the Union Bank of India, the committee approved the "issuance of Long-Term Bonds amounting upto Rs 20,000 crore in one or more tranches for financing of infrastructure & affordable housing."

The bank added that it will explore raising part of this amount in the current financial year, i.e. before March 31, 2026. The circular stated that "the Board approved plan; out of which bank may explore opportunities to raise Rs 7,500 crore (Base Issue - Rs 3,000 crore + Green shoe option - Rs 4,500 crore) with tenor of 10 years before 31.03.2026."

In addition, the committee also cleared the plan to raise funds through green or sustainable bonds.

The circular said the committee approved the "issuance of Green Bonds/Sustainable Bonds amounting upto Rs 5,000 crore in one or more tranches."

The decisions were taken during the meeting of the Committee of Directors for fund raising held on Monday.

As mentioned in the circular, "the Committee of Directors for fund raising (Non-Capital) in its meeting held on 16th March, 2026, inter-alia, considered & approved" the proposals related to bond issuances.

The bank also informed that the meeting "commenced at 10.00 A.M. and concluded at 10.20 A.M."

- ANI

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Reader Comments

S
Shreya B
Good to see the focus on green bonds as well. ₹5,000 crore for sustainable projects is a step in the right direction. We need more Indian banks to fund renewable energy and eco-friendly infrastructure. Climate change is real, people!
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Aman W
The meeting started at 10 and ended by 10:20? That's a 20-minute decision for 25,000 crores? 😅 Hopefully it was well-researched beforehand. Speed is good, but due diligence is better when public money is involved.
P
Priyanka N
As a potential home buyer in a tier-2 city, I really hope the "affordable housing" part translates to actual affordable prices on the ground. Sometimes these funds get absorbed and don't benefit the common person. Fingers crossed!
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David E
Interesting financial strategy. Long-term bonds provide stability. The green shoe option shows they're prepared for market demand. This could be a solid investment opportunity for retail bond investors looking for secure, long-term returns.
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Karthik V
Public sector banks stepping up! This kind of capital raising strengthens the banking system and supports national development goals. Jai Hind! 🇮🇳 Hope other banks follow suit for infrastructure projects.

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