Union Bank of India (UBI) has raised $ 350 million from a US-dollar denominated offshore bond sale through its Hong Kong Branch.
These unsecured bonds, which will be listed at Singapore Stock Exchange, will be a drawdown from UBI’s existing $ 2 billion medium term note program.
This is Union Bank of India’s first offshore bond sale this year and the order book this time saw an oversubscription of 3.4 times, sources in the investment banking industry said.
The five-and-a-half year bonds were priced at 280 basis points over the US Treasury, equivalent to a yield of 4.5 percent per annum.
In terms of allocation, Asia-based investors received 65 percent of the new Notes; Europe received 32 percent and the remaining 3 percent went to US offshore investors.
In terms of breakdown by investor type, fund managers took 35 percent, banks took 46 percent, insurance and sovereign wealth funds took 6 percent and the remaining 13 percent going to private banks.
Citigroup Global Markets has been the Book Runner for Union Bank of India’s all offshore debt offerings including the latest one.
The other Book Runners to the latest offshore bond sale are Standard Chartered Bank, BNP Paribas, Bank of America Merrill Lynch and JP Morgan Chase.
The unsecured bonds were rated Baa3/stable by Moody’s.