Mumbai – On 24 August 2026, Union Bank of India, acting through its Dubai
International Financial Centre (“DIFC”) Branch, successfully priced US$ 600
million Dual Tranche Reg S Senior Unsecured notes, comprising US$ 300 million
of 3-year notes and US$ 300 million of 5-year notes. (the “Offering"). The
bonds are rated BBB by S&P and BBB- by Fitch.
The
transaction comprised:
- US$300 Mn
at UST+93bps maturity 2029
- US$300 Mn
at UST+102bps maturity 2031
The
Notes are expected to be listed on NSE IX at GIFT City IFSC and are structured
as senior unsecured obligations of the Bank.
The
issuance received an overwhelming response from global investors and was
oversubscribed by almost seven times, reflecting strong demand across
geographies and investor segments. The robust participation highlights
international investors' confidence in the Bank’s financial strength, resilient
asset quality, improved profitability, and the positive outlook for the Indian
economy.
The
3-year tranche was primarily allocated to Asia (74%), followed by EMEA (25%)
and Offshore US (1%), with fund managers (78%) and banks (14%) being the
largest investor categories. The 5-year tranche saw allocations of 66% to Asia,
33% to EMEA, and 1% to Offshore US, with fund managers (72%), banks (14%), and
insurance/SWF investors (11%) comprising the majority of demand.
The
exceptional investor response to the bond issuance demonstrates the confidence
that global investors place in Union Bank of India strategic direction towards
India's growth story. The successful execution of this transaction reinforces
our access to international capital markets and further diversifies Bank’s
funding sources. With this successful fund raising, Union Bank of India
continues to strengthen its position as one of India’s leading public sector
banks, committed to supporting economic growth while maintaining a prudent and
diversified funding strategy.
This landmark transaction marked Bank’s
return to the US$ bond market after 12 years, reaffirming the strength of its
franchise as one of India’s leading public sector banks, highlighting sustained
stakeholders confidence.
Barclays
Bank PLC, Citigroup, HSBC, Mashreq, Standard Chartered Bank acted as Joint
Global Coordinators and Joint Bookrunners for this drawdown.