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Non-Tech : ICICI Ltd - (Nyse: IC)
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To: Mohan Marette who wrote (373)3/14/2000 1:18:00 AM
From: Mohan Marette  Read Replies (1) of 494
 
ICICI reduces interest rates on safety Bonds by 70 basis points

The term lending institution ICICI Ltd is set to reduce the interest rates on its new safety bonds issue by 50-70 basis points over the previous float. The institution has also increased the size of its new safety bonds issue by Rs 200 crore. The Rs 400 crore issue with an option to retain over subscription up to Rs 400 crore, is set to be open for subscription between March 17 and March 31.

According to ICICI officials, the rate cut is in line with the current scenario (post budget). "Since this is the end of the tax planning season we have increased the size of the issue for the benefit of the retail customers," added an ICICI official. Annual returns on the regular income bond has been cut by 65 basis points from 11.25 per cent in the previous issue to 10.6 per cent in the upcoming issue. Whereas, on the tax saving bond, which gives rebate u/s 88, interest rates have been cut by 50 basis points from 11 per cent to 10.5 per cent.

The institution has already selected J M Morgan Stanley, DSP Merrill Lynch, Enam Financial Consultants, Kotak Mahindra Capital Co and SBI Capital Markets Ltd whereas trustees for the bondholders are Bank of Maharashtra as the Lead managers of the issue.

On the encash bond interest rates have been reduced by 70 basis points from a yield of 11.10 per cent to a yield of 10.4 per cent in this issue. In the case of Gilt rate plus bonds the reduction in rates is 50 basis points from 10 per cent to 9.5 per cent.


Source : MI
Mar 14, 2000



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