Union Bank of India, one of the largest public sector banks of India, has issued 3.625% Senior Unsecured Bonds due in 2018 through its Hong Kong Branch. The Bonds are rated ‘Baa3’ by Moody’s and ‘BBB- ‘ by Standard & Poor.
The Bonds received strong support from investors with 4.3 times over subscription and 136 accounts in Asia and Europe participating in the transaction. It is the fourth international bond offering from the bank in as many years.
The Notes have been priced at 300 basis points over the 5-year US Treasury Note, at a price of 99.679% to yield 3.690 %. The Notes will be denominated in US dollars, and will bear fixed interest of 3.625% per annum, with interest payable semi-annually in arrears. UBI will apply the net proceeds for funding requirements of foreign Branches.
