Union Bank of India Launches US$300 Million Senior Unsecured Dual Tranche Notes
Union Bank of India is issuing US$300,000,000 in senior unsecured notes through its DIFC Branch in Dubai. The notes are USD denominated and target investors, with the proceeds intended to support the bank's operational and expansion needs.The investment vehicle is set to be listed on the NSE IFSC Limited. The net proceeds from the issuance of the notes will be allocated to three main areas: meeting the funding requirements of the Bank's DIFC Branch, developing and expanding the business of the DIFC Branch, and fulfilling the bank's general corporate purpose.
The notes are structured as a dual tranche offering, featuring two distinct tenures and corresponding interest rates. The issuance carries a senior unsecured ranking and is anticipated to receive a rating of BBB / BBB- from S&P Global and Fitch.
Details of the notes, including their tenure, maturity dates, and coupon rates, are provided below:
| Feature | 3-Year Tranche | 5-Year Tranche |
|---|---|---|
| Tenure of Instrument | 3 years | 5 years |
| Date of Allotment | 28 August 2026 | 28 August 2026 |
| Date of Maturity | 28 August 2029 | 28 August 2031 |
| Coupon Offered | 5.230 | 5.417 |
| Security/Ranking | Unsecured / Senior Unsecured | Unsecured / Senior Unsecured |
The notes are structured as senior unsecured debt instruments. Both tranches are redeemable on their respective dates of maturity. The coupon payments are scheduled semi-annually on 28 February and 28 August each year, commencing from 28 February 2027 up to the Date of Maturity.
UNIONBANK Stock Price Movement
On Monday, shares of Union Bank of India managed a slight climb in the market, settling at ₹183.60 after gaining ₹0.15 and edging up 0.08%. Trading activity for the security included approximately 4.50 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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