Union Bank of India prices rare Swiss franc bond

Union Bank of India on Friday closed a rare SFr160 million bond, opening up a new avenue for other Indian borrowers.

Union Bank of India, acting through its Hong Kong branch, on January 14 priced its debut Swiss franc-denominated bond. The SFr160 million $165 million deal was the first Swiss franc bond to be issued by an Indian borrower in 23 years and only the third such bond out of India period. Barclays Capital was the sole bookrunner.

Its successful completion is expected to pave the way for other Indian borrowers to follow suit.

“Previously, issuers were sceptical about funding in Swiss francs and were taking a wait-and-see approach. But we are getting interest from other borrowers. The deal offers diversification and cost arbitrage, said a banker. Indian issuers tend to issue in packs,...

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