Union Bank of India returns with $600m in dollar bonds
Union Bank of India is back in the global bond game, raising $600 million through its first public US dollar bond sale in more than 12 years.
The bank split the amount into two parts: $300 million in three-year notes at 5.23% interest, and another $300 million in five-year notes at 5.4170%.
This move helps the bank keep borrowing costs low and support lending, following the Reserve Bank of India's (RBI) discounted hedging facility.
Indian banks have raised $11.25bn overseas
Union Bank managed to lock in better rates than expected, cheaper than its initial targets, which is a big win for them.
They are also part of a bigger trend: Indian banks have raised $11.25 billion from overseas bonds recently, especially after RBI said the window provided to banks for hedging non-resident deposits would end a month early, on August 31.
State Bank of India and Bank of Baroda did similar deals earlier this year as everyone rushes to secure funding under new rules.