MUMBAI, Dec 2: ICICI is introducing a range of debt instruments which include two simultaneous issues of unsecured redeemable bonds in the nature of debentures -- Money Multiplier bond and Regular Income bond -- aggregating Rs 250 crore with a right to retain oversubscription upto Rs 250 crore. The third is a Tax Saving bond aggregating Rs 50 crore with a right to retain oversubscription upto Rs 50 crore.

The public issue opens on December 1 and closes on December 23, 1997. Apart from listings on the Bombay Stock Exchange and the National Stock Exchange, ICICI proposes to facilitate market making to offer two-way quotes for select bonds. The bonds do not have any premature recall option.

The minimum issue price for the Money Multiplier bond is Rs 3,000.

Investors can choose from six maturing options starting from 3 years and 7 months to 28 years and six months and redemption values ranging from Rs 4,500 to Rs 1,00,000. These options yield a return (YTM) ranging from 11.98 per cent pa to 13.42 per cent pa.

The Regular Instrument bond has a face value of Rs 5,000 and will be redeemed at the end of the fifth year from the January 22, 1988, the date of allotment. Investors have the option of monthly, half yearly or annual interest payments at the rate of 12 per cent, 12.25 per cent, 12.75 per cent per cent respectively. Minimum application size is six bonds for the monthly option and two bonds each in case of half yearly and annual options.

The Tax Saving bond offers three ways to save tax. Investors can avail of tax rebate (under Section 88) by applying for Option 1 of the bond and earn an annual interest of 12 per cent p.a for five years. Under Option 2, the investor can save capital gains tax by investing the net sales consideration for a period of five years and earn an interest of 12 per cent p.a.

Option 3 allows the investor to save capital gains tax by investing the net capital gains for seven years at an interest of 12.50 per cent per annum.