The tenor for the step-up debenture issue is 36 months with a put option at the end of 12 months. The interest on debentures will be offered at par at the end of 12-months-one-day, and 24 months.

On a step-up debenture, the company will offer an interest of 13.25 per cent per annum payable annually for one year, 13.50 per cent for two years and 13.75 per cent for three years.

The other option offered by the company is a regular return debenture. For the regular returndebenture, the company is offering put and call option at par at the end of 36 months. The annual interest rate offered is a fixed 14 per cent. The interest on application money will be offered at 13 per cent per annum.

Last month, GE Capital Services (India) issued a floating non-convertible debenture linked to RMIBOR worth Rs 50 crore, having a green-shoe option of Rs 25 crore. Through the market instrument, the company collected Rs 80 crore.

Financial institutions, banks and corporates subscribed to the call-linked instrument.

DSP Merrill Lynch was the sole arranger of the issue. "The market lapped up the issue just after it was announced. The response was quite good," said an official from DSP Merrill Lynch. Recently corporates like Reliance Industries and L&T have also come out with such a market driven call linked product. GE Capital Services, which is a 100 per cent subsidiary of GE Capital Corporation of the US, is one of the largest capitalised non-banking finance company in the country. GECaps is mainly into retail finance and corporate loan syndication.

The company has a high standing in the domestic market as it has received a keep well letter from its parent company General Electrics for $ 100 million.