Union Bank of India raises $350 million in MTNs at lower rate than ICICI Bank

KOLKATA: Union Bank of India has joined State Bank of India and ICICI Bank in raising funds for overseas expansion.

The state-run lender has just raised $350 million in medium term notes or MTNs at 4.625%, chairman and managing director Debabrata Sarkar told ET.

Union Bank's coupon was lower than that of ICICI Bank's MTN issue. The private sector lender has mobilised $750 million at 4.70% while the country's largest lender State Bank of India has raised $1.2 billion at 4.125% last month.

"We have a plan to raise up to $500 million in MTN this year but raised $350 million going by the deployment potential," Sarkar said Thursday. "The deal was struck late last night," he said.

Union Bank's first overseas branch in Hong Kong has shown good credit deployment potential while the bank is in the process of opening its first overseas subsidiary in the UK to fund Indian expansion in Europe.

It is also planning an offshore centre at Dubai International Financial Centre and a branch in Antwerp in Belgium.

It has five representative offices abroad including one in London.