Union Bank of India (UBI) will be utilizing $350 million, raised via bond sale for funding its ongoing lending activities at international branches. The public sector lender raised $350 million through unsecured notes due in 2018 through its Hong Kong branch.
The Bonds received strong support from investors with 4.3 times over subscription and 136 accounts in Asia and Europe participating in the transaction. This was the fourth international bond offering from the bank in as many years.
The notes were priced at 300 basis points over the 5-year US Treasury Note, at a price of 99.679% to yield 3.690 %. The US dollars denominated Notes, will bear fixed interest of 3.625% per annum, with interest payable semi-annually in arrears.
