Union Bank of India has successfully raised US$ 600 million through a dual-tranche issuance of senior unsecured notes via its DIFC branch. The notes, featuring coupon rates of 5.230% and 5.417%, have been listed on the NSE IFSC Limited, marking a strategic move to access international capital markets for long-term liquidity.
Union Bank of India Raises $600 Million in International Debt Markets
$600 Million Total Issuance | 5.230% and 5.417% Coupon Rates
Reader Takeaway: The bank successfully tapped global liquidity at fixed rates, strengthening its foreign currency capital base.
What just happened
Union Bank of India, operating through its branch in the Dubai International Financial Centre (DIFC), has finalized a dual-tranche bond issuance. The bank raised a total of US$ 600 million, split equally into two tranches of US$ 300 million each. These senior unsecured notes were officially listed on the NSE IFSC Limited in GIFT City.
Why this matters
This issuance is a significant indicator of the bank's credit standing in international markets. By securing capital at fixed coupon rates of 5.230% (for the 2029 notes) and 5.417% (for the 2031 notes), the bank effectively manages its long-term foreign currency liability profile. The listing on NSE IFSC provides international investors with a transparent and regulated platform to trade these debt instruments.
Structure and Terms
The notes carry a semi-annual interest payment schedule, with the inaugural payout set for 28 February 2027. The 2029 notes carry a coupon of 5.230%, while the 2031 notes carry a rate of 5.417%. The issuance saw participation from 98 allottees for the first tranche and 119 for the second, demonstrating solid investor appetite for Indian banking debt.