MUMBAI, February 10: The Industrial Credit & Investment Corporation of India (ICICI) will hit the capital market with a Rs 400 crore bond retail issue in March. The Securities and Exchange Board of India (SEBI) cleared the offer document of the financial institution on Tuesday.Senior ICICI sources said the institution will file the prospectus with the Register of Companies (RoC) in the last week of February.
"The band as well as the instruments will be fixed next week before the filing of the prospectus," the source said.
Merchant bankers to the issue also have not been finalised but sources say JM Financial, Kotak Mahindra, DSP Merrill Lynch and SBI Capital are likely to be appointed as lead managers.
According to sources, ICICI will float four instruments including money multiplier, regular income bond and tax saving bonds. "All the instruments have different bands and it will be fixed next week," sources said.
The financial institution had last launched a public issue in December which did wellto mop the required amount.
Currently, IDBI is in the market raising money through a retail issue. The largest term lending institution in the country is in the process of raising Rs 1500 crore through a string of instruments. The core size of the issue is Rs 750 crore.
The instruments on offer include growing interest bond which carries a coupon of 11 per cent for the first year which is grows to 18 per cent in the fifth year. The deep discount bond is being offered at a yield to maturity (YTM) of 13 per cent where Rs 12,750 becomes Rs 5 lakh in 30 years.
In the regular income bond IDBI is offering a return of 13.25 per cent per annum, while the infrastructure bond with seven year maturity is carrying an interest rate of 12.50 per cent.
IDBI was forced to revise the interest rates upwards following the Reserve Bank of India's tight money measures announced on January 16 which sucked out liquidity from the system and triggered a sudden rise in domestic interest rates.
Market sources said ICICI isexpected to follow the IDBI line in fixing the coupon rates.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
