The $600 million bond issue was oversubscribed by around 7.8 times, indicating strong demand from international investors, the bank said on September 9.
The listing took place at NSE-IFSC, the international exchange operated by the National Stock Exchange group in GIFT City.
Union Bank said the issuance is part of its efforts to diversify its funding sources and increase its access to international capital markets. The bank did not disclose further details on the investor mix in its announcement.
At the listing ceremony, Asheesh Pandey, Managing Director and CEO, Union Bank, said the strong investor response reflected confidence in the bank’s balance sheet, asset quality, capital position and governance standards.
The bond issuance comes as Indian banks tap overseas markets to raise foreign-currency funds and diversify their funding base.
V Balasubramaniam, MD and CEO, NSE International Exchange, said the exchange had listed Union Bank’s $600 million issuance and that cumulative bond listings on NSE-IFSC had crossed $56 billion. He added that medium-term note programme establishments on the exchange had exceeded $75 billion.The listing also adds to the growing number of international debt-market transactions routed through GIFT City, which provides a framework for Indian and overseas entities to access international financial markets from India.
Union Bank said it plans to expand its activity at GIFT City in the coming quarters.
