United Bank of India is planning to raise 3 billion Indian rupees ($55.15 million) via unsecured perpetual bonds at 9.27 percent, three sources with direct knowledge of the deal said.
Axis Bank, ICICI Bank, ICICI Securities Primary Dealership, Trust Capital, Kotak Mahindra Bank and Yes Bank are the arrangers to the deal, the sources said.
Pay-in date for the deal is on Wednesday.
The firm is planning to raise funds through perpetual bonds as they are considered quasi-equity, giving much needed support to the leverage ratio.
The perpetual bond has a call option at the end of the tenth year.