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Hyderabad, Sept 8: Kicking off a new concept in the debt market, ICICI has taken the lead in mooting state-specific financial instruments beginning with the Andhra Bonds to be launched towards the end of the year. The bonds are to be deployed exclusively for core sector projects in the state. This is the first time that any financial institution is floating a state-specific SPV, the success or failure of which will set a new trend in the financial markets, according to ICICI officials.
The proposal for the special bonds also signifies the special relationship which the ICICI, prodded by the AP chief minister N Chandrababu Naidu, is forging with the state which is fast emerging as one of the preferred destinations for investments in the infrastructure sector.
"This is the first time that ICICI will be committing the full proceeds of a bond issue to one state. ``Depending upon the success of this issue we may continue the excercise for other states also,'' ICICI general manager Kalpana Morpariasaid.
While it is already known that ICICI is setting up the multi-crore Knowledge Hub in Hyderabad, the financial institution has also decided to set up `safty centres' in the state to service safty bonds which is the first time it is setting up such a chain.
Considering the investing nature of the people of Andhra Pradesh, ICICI is proposed to set up safety centres at Rajamundry, Nellor, Warangal, Guntur, and Tirupati. Morparia also informed that ICICI Bank is intended to open two branchs in the state at Vijayawada and Vishakhapatnam.
The proposed safety centers are expected to provide service to the safety bond holders and the agents at their doorstep. This would help the financial institution to popularise and bring confidence of the ultimate investor on the debt instrument.
Morparia said that ICICI had disbursed a lone amount of Rs 15,000 crore during the last year and targetted to disburse about Rs 18,000 crore during this year. While the financial institution had mopped up about Rs 13,000 crorein the last year, she added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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