UTI Bank raises USD 60 million by Upper Tier -II Capital from International Market

UTI Bank Ltd has announced that the Bank has raised USD 60 million of hybrid capital through the issuance of Upper Tier - II in the international market as a part of its MTN programme for Euro 2 billion. It had earlier raised USD 150 million through the issuance of Upper Tier II bonds in August 2006 and Hybrid Tier - I bonds of USD 46 million in November 2006. BNP Paribas, Singapore has acted as the sole arranger for this transaction.

Transaction Details:

- Amount: USD 60 million

- Security: 15 NC 10 Upper Tier - II Subordinated Debt

- Security Ratings: Baa2 (Moodys)

- Maturity Date: June 28, 2022

- Issuer Call Option: At par on June 28, 2017 and every coupon date thereafter

- Coupon: 7.1250%

- Yield to Investor: 7.1780%

- Re-offer Spread tp Mid Swap: 10 yr USD Mid Swap + 145 Bps

- Re-offer Spread to Benchmark: 10 yr US Treasury + 203.4 Bps

- Step-Up: Floating rate step-up of 245 bps over 6 month USD Libor

- Trade Date: June 19, 2007

- Settlement Date: June 28, 2007

Source : Equity Bulls

Keywords