Union Bank of India has successfully issued US$600 million in senior unsecured dual tranche notes, maturing in 2029 (3 years) and 2031 (5 years). The issuance, facilitated through the Bank’s DIFC Branch in Dubai, aims to meet funding requirements for its DIFC Branch, support business development, and cover general corporate purposes. The notes are expected to be rated BBB/BBB- by S&P Global/Fitch.
Union Bank of India Completes US$600 Million Senior Unsecured Notes Issuance
Union Bank of India announced the successful issuance of US$600 million aggregate principal amount of US$ REG S Senior Unsecured Dual Tranche Notes. These notes are split into two tranches: one maturing in 2029 (3 years) and the other in 2031 (5 years). The issuance was conducted through the Bank’s branch located in the Dubai International Financial Centre (DIFC).
Purpose of the Issuance
The net proceeds generated from this issuance are earmarked for several strategic objectives. These include meeting the funding requirements of the Bank’s DIFC Branch, facilitating the development and expansion of the business operations of the DIFC Branch, and fulfilling its general corporate purposes. This move is expected to bolster the bank’s international financial capabilities.
Key Details of the Notes
The notes are denominated in USD and are categorized as senior unsecured instruments. They are anticipated to receive a rating of BBB / BBB- from prominent rating agencies S&P Global and Fitch. The size of the issue for each tranche is US$ 300,000,000. The instruments will mature on 28 August 2029 for the 3-year tranche and 28 August 2031 for the 5-year tranche.
Coupon and Payment Schedule
For the 3-year notes, a coupon of 5.230% per annum will be paid semi-annually on 28 February and 28 August each year, commencing from 28 February 2027 up to the maturity date. The 5-year notes will carry a coupon of 5.417% per annum, also payable semi-annually on the same dates, starting from 28 February 2027 until maturity. The coupon/interest payment schedule and principal repayment are aligned with these dates.
Listing and Security
The issuance is proposed to be listed on the NSE IFSC Limited. The notes are unsecured, and no specific charges or securities have been created over the bank’s assets for this issuance. The ranking of these notes is Senior Unsecured, with no special rights or privileges attached beyond those of a senior unsecured creditor.
The redemption of these notes will occur on their respective dates of maturity, indicating a clear repayment plan for investors.
Source: BSE
