Aug. 4 (Bloomberg) -- Union Bank of India, a state-owned lender, plans to sell 5 1/2-year dollar bonds at a spread of about 315 basis points more than similar-maturity Treasuries, according to two people familiar with the matter.
The bonds will price within a range of five basis points either side of the guidance, the people said, asking not to be identified as details are private. A basis point is 0.01 percentage point.
The lender may complete the sale of between $300 million and $500 million of bonds as soon as today, Managing Director Mavila Vishwanathan Nair said in a telephone interview. Barclays Plc, Citigroup Inc., Deutsche Bank AG, Standard Chartered Plc and UBS AG are managing the sale, a person familiar with the matter said yesterday.
Union Bank, based in Mumbai, pulled a sale of bonds denominated in dollars in April as market conditions soured, two people familiar with the matter said at the time. The bank, rated BBB- by Standard & Poor’s, has no bonds or loans maturing before 2012, according to data compiled by Bloomberg.
India’s IDBI Bank Ltd., also rated the lowest investment grade of BBB- by S&P, paid a spread of 310 basis points when it sold $350 million of 5 1/2-year bonds on July 29, the data show.
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