UTI Bank allots Unsecured Redeemable Non-Convertible Tier I Debentures

UTI Bank Ltd has announced that the Board of Directors of the Bank has passed a resolution approving allotment of Unsecured Redeemable Non-Convertible Debentures to various investors on private placement basis as the Bank’s Tier 1 capital aggregating to Rs 214 crores. The Debentures are issued as per term sheet.

Issue of Unsecured Subordinated Bonds in the nature of Debentures aggregating Rs 214 crores, for inclusion as tier 1 capital on the following terms:

Name of the Issuer - UTI Bank Ltd
Amount to be raised - Rs 214 Crores
Face Value - Rs 10,00,000 per Debenture
Issue price - Rs 10,00,000 per Debenture (at par)
Security - Unsecured Redeemable Non Convertible Tier 1 Debenture
Rating - "LAA" by ICRA and "AA (ind)" by FITCH
Coupon Rate upto 10 years - 10.05% p.a.
Coupon Payment - Semi-annually

Coupon payment Dates - Subject to RBI Guidelines issued in this regard, Interest would be paid semi-annually on September 30, and March 31 and on Call Option date if call option is exercised by Bank.

Maturity - Perpetual

Call Option - The Bank shall have an option for redemption 'i.e. Call Option' to redeem the Bonds at par at the end of 10th Year from the Deemed Date of Allotment i.e. September 30, 2016 and on every interest payment date and thereafter (exercisable only with RBI approval)

Step up of coupon - 100 bps over and above coupon rate of 10.05% semi annual i.e. 11.05% semi-annual from September 30, 2016, if the Bank does not exercise the call option.

Day Count basis - Interest payable on the Debentures will be calculated on the basis of actual number of days elapsed in a year of 365 or 366 Days as the case may be.

Interest on application money - Interest on application money will be same as the Coupon rate (subject to deduction of Tax at Source at the rate prevailing from time to time under the provisions of the Income Tax Act, 1961 or any other statutory modifications or re-enactment thereof) will be paid on application money to the applicants from the date of realization but excluding the Deemed Date of Allotment.

Listing - The Debentures being offered shall be listed on Bombay Stock Exchange Ltd (BSE) and National Stock Exchange of India Ltd (NSE)
Minimum Application Size - 1 Debenture and in multiples of 1 Debenture thereafter
Market Lot - 1 and in multiples of 1 thereafter
Debenture Trustees - The Western India Trustee & Executor Co. Ltd
Registrar & Transfer Agents - Karvy Computershare Pvt Ltd.
Arrangers - Allianz Securities ltd., Citibank, N.A, Darashaw & Company Pvt Ltd.
Issue Schedule :-

Issue Opening Date (*)- September 25, 2006
Issue Closing Date (*) - September 29, 2006
Deemed Date of Allotment (*) - September 30, 2006

(*) The issuer reserves the right to change the issue timetable including the Deemed Date of Allotment at its sole discretion, without giving any reasons or prior notice.

Source : Equity Bulls

Keywords