ICICI's third public offer of bonds

By Our Corporate Reporter

CHENNAI, AUG. 19. ICICI is making its third public offer of unsecured redeemable bonds in the nature of debentures aggregating Rs. 400 crores with a right to retain oversubscription of up to Rs. 400 crores. The issue will open for subscription from August 16 to September 5.

The issue offers various options under five types of bonds - tax saving bond, encash bond, regular income bond, money multiplier bond and children growth bond.

The premier credit rating agencies have assigned AAA ratings for the bonds indicating highest safety with regard to timely payment of principal and interest.

Under the tax saving bond the minimum investment of Rs. 5,000 carries 9 per cent interest annually for a three year period. There are also other options under which Rs. 5,000 invested becomes Rs. 6,660 in three years and four months and Rs. 9,000 in six years and six months.

The encash bond the minimum subscription should be for one bond at an issue price of Rs. 5,000. The tenure is five years with an option for early encashment anytime after the completion of one year from the deemed date of allotment. The interest rate is 9 per cent for one year going up by 0.25 per cent each year from the second year onwards.

The regular income bond has monthly, semi-annual and annual interest payment options with interest rates calculated at 9.25 per cent, 9.50 per cent and 9.75 per cent respectively under the three options.

The money multiplier bond is to cater to the needs of various investors who would like to save now to meet the cash flow requirements in near future. There are two options available under this scheme. Under the first option Rs. 5,000 invested grows to Rs. 7,475 in four years and five months and in the second option it doubles to Rs. 10,000 in seven years and three months.

The children growth bond has been designed to provide for the requirements of any lumpsum amounts. Under option I, an investment of Rs. 5,000 grows to Rs. 25,000 in 16 years and five months and Rs. 40,000 in 21 years.

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