The government owned bank, Union Bank of India intends to raise $300-500 million by the way of a bond issue dated to appear next month. This is done to promote its business expansion plans, said a leading official of the bank on Wednesday.
The money is expected to be raised as a part of its Medium Term Notes plan. These bonds are expected to have a maturity period of 5 years. This information was given by Union Bank of India’s chairman and managing director, MV Nair in Mumbai.
He said that the bank intends to raise $300-500 million by issuing medium term notes (MTN) that are expected to be released by the end of February and these bonds are expected to have a maturity period of 5 years.
He further stated that the bank’s MTN programme contains an umbrella of $2 billion.
But Union bank is not the only bank to opt for MTN route. The country’s biggest lender, State Bank of India too had chosen the MTN way to procure the required capital for its business expansion plans.
Till date, SBI has managed to raise about $2.9 billion in different stages. This has given the bank a room to raise extra $2.1 billion by this method.