Search the Internet          Tips  Sites: Finance, Investment

ICICI public bond issue opens July 16

Financial services firm ICICI Ltd on Thursday said its second public offering of unsecured redeemable debentures for 2001-02 will be open for subscription from July 16 to August 4.

The issue is the second in the Safety Bonds series for the financial year.

The issue size is Rs 4 billion and ICICI has the option to retain an additional Rs 4 billion. The bonds have been awarded the highest safety LAAA rating by ICRA Ltd and AAA by CARE Ltd.

The issue offers five investment options.

The tax saving bond offers two choices, one of which provides for annual payment of interest. The other is a deep discount bond. The first option has a three-year maturity while the other has a maturity of three years and four months.

The encash bond has a five-year maturity. In addition to interest payable annually, it carries a premature withdrawal facility applicable anytime after one year.

The five-year regular income bond offers investors three options for interest payment -- monthly, semi-annually or annually.

The money multiplier bond offers two choices: a four-year-five-month bond with a yield of 9.5 per cent, and a seven-year-two-month bond with a yield of 10.2 per cent.

And finally, the children growth bond offers two options: under option I the investment grows five times the initial investment, while under option II the investment grows eight times the invested amount.

All the bonds, except the encash bonds are available in dematerialised format.

The New York Exchange-listed ICICI has obtained approval from capital market regulator Securities and Exchange Board of India to raise a total of Rs 50 billion through retail bond issues in 2001-02 with the option of retaining oversubscription for an additional Rs 50 billion.

Tell us what you think of this report