Union Bank of India, a state-owned lender based in Mumbai, hired five banks to arrange $150 million of three-year loans, a person familiar with the matter said.
Bank of America Corp., BNP Paribas, Mizuho Financial Group Inc., Standard Chartered Plc and Bank of Tokyo-Mitsubishi UFJ Ltd. are arranging the loans, which have been put out to general syndication, said the person, who asked not to be identified because the details are private.
The loans will pay interest of 117 basis points more than the London interbank offered rate, or Libor, the person said. A basis point is 0.01 percentage point.
Lenders that pledge $15 million or more will receive an all-in payment of 150 basis points over Libor, commitments of $10 million to $15 million will get 145 basis points more than Libor and banks that lend $5 million to $10 million will get 140 basis points over Libor, the person said.