India’s Union Bank postpones $350mln fund-raising move

Financial crisis in Greece prompts lender to put off lender’s bond sale. 

Public sector Union Bank of India has deferred a move to raise around $350 million through the issue of bonds.

Proceeds from the issue, part of its $2-billion medium-term note programme, were to be used to fund the bank’s international operations and lending in India.

Sources close to the bank said the postponement came in the wake of the crisis in Greece that had resulted in investors seeking more returns on bonds, a demand that it was not inclined to oblige.

It is learnt that Union Bank will hit the markets once it is confident of raising money at better rates.

The bonds, denominated in dollars, carry a BBB-rating of Standard & Poors.

The bank had appointed Citigroup Inc, Deutsche Bank AG, Standard Chartered Plc and Barclays Plc as the lead arrangers.

View the full story in Telegraph India.