Industrial Credit and Invest-ment Corporation of India plans to offer seven instruments as part of its Rs 3,000 crore, umbrella bonds issue. The interest rate band for the issue will be 12-15 per cent.
The institution is now awaiting the Securities and Exchange Board of Indias clearance for its prospectus. Once it receives Sebis nod, ICICI will issue bonds in tranches as and when funds are required.
The seven instruments include regular income bonds, money multiplier/ deep discount bonds, tax-saving bonds, index bonds encash bonds, twin benefit bonds and monthly pension bonds.
The institutions prospectus states, ICICI will fix the issue size for each tranche and will select some or all of the instruments listed above and seek approval for new instruments.
If its plans materialise, ICICI will become the first entity in India to issue a monthly pension bond. The index bond will track the Bombay Stock Exchange sensex while the twin benefit bond will have two parts, with one portion providing cumulative interest and the other non-cumulative interest. The regular income fund will offer four options for receiving interest payments monthly, quarterly, half-yearly and annual.
Meanwhile, ICICI has already received clearance from Sebi to raise Rs 400 crore, with a 100 per cent greenshoe option, through three instruments a tax-saving scheme, a money multiplier bond and a regular income bond. Since the FI was in immediate need of funds, it decided to access the debt market by modifying the umbrella prospectus of Rs 3,000 crore to a retail prospectus of Rs 400 crore, said sources.
ICICIs Rs 300 crore retail bonds issue, floated in November 1997, had barely managed to mop up the targeted amount. In addition, the private placement issue floated by the institution also did not receive a good response due to the interest rate volatility prevailing at that time. The combined collection of the retail bonds and private placement issues was not more than Rs 500 crore, said sources.
