Union Bank of India targets raising $500mn via bonds

The lender seeks to get funds from Reg S bond, allowing it to be offered to overseas investors.

State-run lender Union Bank Of India (UBI) is looking to raise $300 million-$500 million from international bond markets, three sources with direct knowledge of the matter told Reuters.

Banks have submitted proposals for the mandate, which is expected to be awarded shortly, two of the sources said.

UBI is looking to raise funds from a Reg S bond, which means the issue will be open to overseas investors outside the United States, the sources said in a report in Economic Times.

UBI's last visit to the international bond markets was in January when it raised 160 million Swiss francs ($195 million) from a 4.5-year bond. That borrowing was the first in the currency from an Indian borrower in 24 years.