Union Bank of India trades higher on the bourses

Union Bank of India is currently trading at Rs. 153.25, up by 4.10 points or 2.75% from its previous closing of Rs. 149.15 on the BSE. The scrip opened at Rs. 149.50 and has touched a high and low of Rs. 154.10 and Rs. 149.50 respectively. So far 146022 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 255.00 on 09-May-2013 and a 52 week low of Rs. 97.10 on 29-Aug-2013. Last one week high and low of the scrip stood at Rs. 157.00 and Rs. 145.90 respectively. The current market cap of the company is Rs. 9668.90 crore. The promoters holding in the company stood at 60.13% while Institutions and Non-Institutions held 25.09% and 14.78% respectively. Union Bank of India acting through its Hong Kong Branch successfully priced a $350 million Reg S senior unsecured notes drawdown from its $2 billion Medium-Term Note Program. The bonds are rated ‘Baa3’ by Moody’s and ‘BBB-‘ by S&P. The 5.5-year bonds were priced at a spread of 280 bps over the 5-year US Treasury, equivalent to a price of 99.764 and yield of 4.549% per annum. The bonds will be denominated in US dollars, and will bear fixed interest of 4.5% per annum, with interest payable semi-annually in arrears. The bonds will mature on October 28, 2019. The total order book of the offering was in excess of $1.2 billion and was oversubscribed 3.4x times with demand from 150 investors, underscoring the bank’s strong business franchise and its position as one of India’s largest bank. Bank of America Merrill Lynch, BNP PARIBAS, Citigroup, J.P. Morgan and Standard Chartered Bank acted as Joint Lead Managers for the drawdown. Geographically, 65% of the bonds were allocated to Asia, 32% to Europe and the remaining 3% to offshore US. In terms of breakdown by investor type, banks were allocated 46%, followed by fund managers at 35%, insurance and sovereign wealth funds at 6%, while the remaining 13% were allocated to private banks and others.