Union Bank of India has announced the issuance of US$600 million in senior unsecured notes through its DIFC Branch in Dubai. The issue will have two parts of US$300 million each, with maturities of three years and five years.
Three-Year and Five-Year Notes
The first tranche of US$300 million will have a three-year tenure and will mature on August 28, 2029. The second tranche of US$300 million will have a five-year tenure and will mature on August 28, 2031. Both notes are scheduled to be allotted on August 28, 2026.
Interest Rates on the Notes
The three-year notes will carry an interest rate of 5.230%, while the five-year notes will carry an interest rate of 5.417%. Interest will be paid twice a year on February 28 and August 28, starting from February 28, 2027, until the respective maturity dates.
Use of Funds
Union Bank said the funds raised through the issue will be used to meet the funding requirements of its DIFC Branch, expand and develop its business in Dubai, and meet the bank’s general corporate purposes.
Notes Will Be Unsecured
The notes will be USD-denominated senior unsecured instruments. No security or charge will be created over the bank’s assets. The notes are expected to receive ratings of BBB from S&P Global and BBB- from Fitch. The proposed listing will be on NSE IFSC Limited.
