State-run Union Bank of India (UBI) has raised Rs 1,500 crore by issuing Basel III compliant bonds on a private placement basis.

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The base issue size of the bond offer was Rs 500 crore with an option to retain oversubscription up to Rs 1,000 crore.

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The bank accepted bids for Rs 1,500 crore, UBI said in a regulatory filing on Friday.

The perpetual bonds are eligible for inclusion in additional tier I capital, it said, adding it offers coupon at 8.40 per cent per annum.

Perpetual bonds carry no maturity date and hence may be treated as equity, not as debt.

Stock of UBI closed at Rs 44.10 apiece on BSE, down by 4.44 per cent from the previous close.