Union Bank of India has approved a major fundraising plan through bond issuances to support infrastructure development and affordable housing financing in India.

The decision was taken during the meeting of the Committee of Directors for Fund Raising (Non-Capital) held on 16 March 2026.

The development was disclosed to stock exchanges in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

₹20,000 Crore Long-Term Bond Issuance Plan

During the meeting, the committee approved the issuance of long-term bonds worth up to ₹20,000 crore.

These bonds will be issued in one or more tranches and will primarily be used to finance projects related to:

• Infrastructure development

• Affordable housing initiatives

Such financing aligns with government priorities to strengthen infrastructure capacity and increase housing availability across India.

Long-term bonds allow banks to raise capital from institutional investors for extended periods, enabling them to support large-scale development projects.

Initial ₹7,500 Crore Fundraising Before March 2026

As part of the broader ₹20,000 crore fundraising plan, Union Bank of India plans to explore raising ₹7,500 crore in the near term.

This issue may include:

• Base Issue: ₹3,000 crore

• Green Shoe Option: ₹4,500 crore

The bonds are expected to have a tenor of 10 years, providing long-term funding stability for the bank’s lending operations.

The bank intends to complete this initial fundraising before 31 March 2026, depending on market conditions and investor demand.

A green shoe option allows issuers to increase the size of the bond issue if investor demand is strong.

₹5,000 Crore Green and Sustainable Bonds

In addition to the long-term bonds, the committee also approved the issuance of green bonds or sustainable bonds worth up to ₹5,000 crore.

These bonds will also be issued in multiple tranches.

Green bonds are financial instruments used to raise funds specifically for environmentally sustainable projects.

Projects typically financed through green bonds include:

• Renewable energy projects

• Energy-efficient infrastructure

• Climate-friendly transportation systems

• Sustainable urban development

By issuing green or sustainable bonds, Union Bank of India aims to contribute to environmentally responsible financing while also tapping into the growing global market for sustainable investments.

Board Meeting Details

The meeting of the Committee of Directors for Fund Raising (Non-Capital) took place on 16 March 2026.

According to the official disclosure:

• Meeting Start Time: 10:00 AM

• Meeting End Time: 10:20 AM

The committee reviewed and approved the fundraising proposals during this session.

Importance of Bond Fundraising for Banks

Bond issuance is a common method used by banks to raise funds without diluting equity ownership.

Unlike equity fundraising, bonds allow banks to borrow funds from investors for a fixed period while paying periodic interest.

For public sector banks like Union Bank of India, such fundraising helps support lending in key sectors such as infrastructure and housing.

These sectors require large capital investments and long-term financing.

Supporting Infrastructure and Housing Development

Infrastructure development remains one of the key priorities of India’s economic growth strategy.

Projects such as highways, railways, urban transport, and digital infrastructure require significant financial support from banks and financial institutions.

Similarly, the affordable housing sector has been a major focus area for government policies aimed at improving housing accessibility for low- and middle-income households.

By raising funds through long-term bonds, Union Bank of India will be able to extend long-duration loans to support these sectors.

Growing Demand for Sustainable Finance

The decision to issue green or sustainable bonds reflects the growing importance of sustainable finance in global financial markets.

Investors are increasingly seeking opportunities that combine financial returns with environmental and social impact.

As a result, green bonds have become an important financing tool for banks and corporations worldwide.

By entering this segment, Union Bank of India can attract a broader base of investors, including those focused on environmental, social, and governance (ESG) investments.

Regulatory Disclosure to Stock Exchanges

The announcement regarding the bond issuance was submitted to both major Indian stock exchanges:

• BSE Limited

• National Stock Exchange of India

The bank’s equity shares are traded under the symbol UNIONBANK, while the disclosure also referenced related securities listed on the exchanges.

Conclusion

The fundraising approval by Union Bank of India represents a significant step in strengthening its funding base for long-term lending.

The bank plans to raise up to ₹25,000 crore through long-term bonds and green or sustainable bonds, with an initial tranche of ₹7,500 crore expected before March 31, 2026.

The funds will support critical sectors such as infrastructure development, affordable housing, and environmentally sustainable projects, reinforcing the bank’s role in financing India’s economic growth and sustainability initiatives.