Funds to be raised in one or more tranches through debt instruments under the Medium Term Note (MTN) Programme
Kolkata / Public sector lender UCO Bank has received approval from its Board of Directors to raise foreign currency funds of up to USD 1 billion. The proposed fundraising will be carried out in one or more tranches through the issuance of debt instruments under the bank’s Medium Term Note (MTN) Programme.
The decision was taken at a meeting of the Board of Directors held on August 24, 2026.
Board approves USD 1 billion fundraising plan
According to the regulatory disclosure, the Board has approved a proposal to raise foreign currency funds for an aggregate amount of up to USD 1 billion.
The fundraising will not necessarily take place through a single issuance. Instead, the bank may raise the amount in one or more tranches, depending on market conditions, funding requirements and other applicable considerations.
The proposed instruments will be issued under UCO Bank’s Medium Term Note (MTN) Programme, which provides a framework for raising funds through debt securities in international markets.
What is an MTN Programme?
A Medium Term Note Programme is a flexible debt-raising mechanism through which a financial institution can issue debt securities periodically rather than raising the entire amount through a single transaction.
Under such a programme, the issuer can determine the timing, size, currency and other terms of individual issuances based on its funding requirements and prevailing market conditions.
For UCO Bank, the approval provides flexibility to access international or foreign-currency debt markets as and when required.
Fundraising may support the bank’s growth requirements
The approval comes at a time when banks are looking to strengthen their funding base and expand their ability to support credit growth.
Foreign-currency fundraising can provide a bank with access to a wider pool of international investors and funding sources. Depending on the eventual structure and utilisation of the funds, the borrowing could support the bank’s broader business and financial requirements.
However, the August 24 disclosure does not specify the exact utilisation plan, currency-wise breakup, pricing, interest rate or maturity of any individual debt issuance. These details would generally be available when specific tranches are launched.
Fundraising in one or more tranches
A key feature of the Board approval is that UCO Bank can raise the approved amount in multiple tranches.
This means the bank does not have to raise the entire USD 1 billion immediately. Individual issuances can potentially be timed according to:
- Market conditions
- Foreign-currency funding requirements
- Investor demand
- Interest-rate conditions
- The bank’s liquidity and capital requirements
- Regulatory and internal approvals
The final terms of each issuance would be determined separately in accordance with the applicable framework.
Previous regulatory communication
The latest Board decision follows UCO Bank’s earlier regulatory intimation dated August 19, 2026.
The bank has disclosed the latest development to the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations.
Stock exchange details
The regulatory information has been submitted to both major Indian stock exchanges:
| Particular | Details |
|---|---|
| Bank | UCO Bank |
| Fundraising limit | Up to USD 1 billion |
| Currency | Foreign currency |
| Instrument | Debt Instruments |
| Programme | Medium Term Note (MTN) Programme |
| Issuance | One or more tranches |
| Board approval date | August 24, 2026 |
| Board meeting start | 2:45 PM |
| Board meeting ended | 4:50 PM |
| NSE Symbol | UCOBANK |
| BSE Scrip Code | 532505 |
| Regulatory disclosure | Regulation 30, SEBI Listing Regulations |
Why the move is significant
The approval is significant because it gives UCO Bank an additional avenue for foreign-currency funding. Access to international debt markets can help diversify a bank’s funding sources beyond domestic channels.
The USD 1 billion approval should therefore be viewed as a fundraising capacity or ceiling approved by the Board, rather than confirmation that the entire amount has already been raised.
The actual amount raised, timing of issuance, interest cost, maturity and other terms will depend on the individual debt offerings undertaken under the MTN Programme.
Key takeaway
UCO Bank’s Board has approved a foreign-currency fundraising programme of up to USD 1 billion, with the amount to be raised through debt instruments in one or more tranches under the MTN Programme.
The move provides the state-owned lender with greater flexibility to tap international funding markets and access foreign-currency resources as required. Further details are expected when individual debt issuances are announced.
