Union Bank of India has announced the successful issuance of US$ REG S Senior Unsecured Dual Tranche Notes, collectively raising US$600,000,000. The notes, issued through its DIFC Branch, comprise two tranches: US$300,000,000 due 2029 with a 5.230% coupon and US$300,000,000 due 2031 with a 5.417% coupon. This issuance aims to bolster the bank’s capital base and support its growth initiatives.
Union Bank of India Completes US$600 Million Note Issuance
Union Bank of India has successfully completed the issuance of US$ REG S Senior Unsecured Dual Tranche Notes, a significant move to enhance its capital structure. The issuance, facilitated through the bank’s DIFC Branch, aggregated to a total of US$600,000,000. This fundraising effort underscores the bank’s strategic financial management and its capacity to access international debt markets.
Details of the Note Issuance
The offering comprises two distinct tranches:
- 2029 Notes: US$300,000,000 Senior Unsecured Notes due 2029, carrying a fixed coupon rate of 5.230% per annum. These notes were issued in registered form with a principal amount denomination of US$200,000 and integral multiples of US$1,000.
- 2031 Notes: US$300,000,000 Senior Unsecured Notes due 2031, bearing a fixed coupon rate of 5.417% per annum. Similar to the 2029 notes, these were also issued in registered form with denominations of US$200,000 and integral multiples of US$1,000.
Both series of notes are classified as Unsecured and were offered outside the United States in accordance with Regulation S under the U.S. Securities Act of 1933. The issuance was coordinated through the bank’s DIFC Branch, with the notes listed on the NSE IFSC Limited.
Payment Schedule and Allotment
Interest payments for both the 2029 and 2031 Notes will be made semi-annually on 28 February and 28 August each year, commencing on 28 February 2027. The total number of allottees for the 2029 Notes was 98, while the 2031 Notes saw 119 allottees, indicating broad investor interest.
Source: BSE
