Call option exercised on two Basel III Tier-1 bond series; redemption payments on 21-11-2026 and 19-12-2026
Union Bank of India has exercised the Call Option on two Basel III compliant Tier-1 bond series, so both will be redeemed before their stated maturity.
By ScoutQuest · · 2 min read
- Series XXXII issue size
- ₹ 2000 Crores
- Series XXXII coupon and dates
- Coupon 8.70%, redemption payment 21-11-2026, record date 07-11-2026
- Series XXXIII issue size, coupon and dates
- ₹ 1500 Crores, coupon 8.40%, redemption payment 19-12-2026, record date 05-12-2026
What the bank has done
Union Bank of India has exercised the Call Option on two series of Basel III compliant Tier-1 bonds. A call option is a right written into the bond that lets the issuer repay the money early, on a date fixed when the bonds were issued, instead of waiting for the full maturity. The update is a notice of redemption of these bonds following that exercise.
- Bond Series: Basel III compliant Tier-1 Series XXXII and Basel III compliant Tier-1 Series XXXIII
- This notice matters mainly to holders of these bonds and to the trustee named in the update, M/s IDBI Trusteeship Services Ltd.
The two series in detail
- Basel III compliant Tier-1 Series XXXII: issue size ₹ 2000 Crores, coupon rate 8.70%, redemption due date as per the call option exercised 22-11-2026, date of redemption payment 21-11-2026, record date 07-11-2026.
- Basel III compliant Tier-1 Series XXXIII: issue size ₹ 1500 Crores, coupon rate 8.40%, redemption due date as per the call option exercised 20-12-2026, date of redemption payment 19-12-2026, record date 05-12-2026.
Why the payment date is a day earlier
The update carries a note from the Information Memorandum. If the Call Option Due Date, which is also the last coupon payment date when the call is exercised, falls on a day that is not a business day, the Bank pays the Call Option Price on the immediately preceding business day. That payment also carries interest accrued on the bonds until but excluding the date of payment.
What a record date means for a holder
The record date is the cut-off date used to identify who is entitled to the redemption payment. In simple terms, an investor must be recorded as a holder of the bond on that date to receive the call price.
How to read this
- This is a scheduled early repayment of borrowed money by the Bank, announced through the exchange with the specific amounts, coupons and dates.
- Bondholders in these two series are being repaid at the call price along with interest accrued up to the payment date.
- The update sets out the terms of the repayment; the amounts shown are the issue sizes of the two series, ₹ 2000 Crores and ₹ 1500 Crores, at coupons of 8.70% and 8.40% respectively.
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More numbers
- Issue size - Basel III Tier-1 Series XXXII₹ 2000 Crores
- Coupon rate - Basel III Tier-1 Series XXXII8.70%
- Issue size - Basel III Tier-1 Series XXXIII₹ 1500 Crores
- Coupon rate - Basel III Tier-1 Series XXXIII8.40%
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