Union Bank of India has raised $350 million from an overseas US-dollar denominated bond sale.
The overall demand for the unsecured senior Notes was about $1.5 billion. But the bank has decided to retain only $350 million, sources in the banking industry said.
The annual coupon has been fixed at 3.625 per cent (US treasury plus 300 basis points). This is better than the initial guidance of US Treasury plus 315 basis points.
One basis point is one hundredth of a percentage point. This overseas bond sale is the third tranche under a $2 billion European Medium Term Note programme.
The unsecured Notes, which has a tenure of five-and-half years, will be issued by Union Bank's Hong Kong branch. They will be listed in the Singapore stock exchange.