In a move aimed at strengthening funding for key development sectors, Union Bank of India has approved plans to raise funds through long-term bonds and green or sustainable bonds.
The bank announced on Monday that its Committee of Directors for fund raising (Non-Capital) has cleared a proposal to issue long-term bonds worth up to ₹20,000 crore. The funds will be used to support infrastructure and affordable housing projects.
According to a circular issued by the bank, the committee approved the “issuance of Long-Term Bonds amounting upto ₹20,000 crore in one or more tranches for financing of infrastructure & affordable housing.”
The bank also stated that it may raise part of the funds during the current financial year, before 31.03.2026. As per the circular, “the Board approved plan; out of which bank may explore opportunities to raise ₹7,500 crore (Base Issue – ₹3,000 crore + Green shoe option – ₹4,500 crore) with tenor of 10 years before 31.03.2026.”
In addition to the long-term bonds, the committee also approved a proposal to raise funds through green or sustainable bonds. The circular mentioned that the bank cleared the “issuance of Green Bonds/Sustainable Bonds amounting upto ₹5,000 crore in one or more tranches.”
These decisions were taken during a meeting of the Committee of Directors for fund raising held on Monday. As stated 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 further informed that the meeting “commenced at 10.00 A.M. and concluded at 10.20 A.M.”
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