UTI Bank raises Hybrid Tier I Capital from International Market

UTI Bank Ltd has announced that the Bank has raised USD 46 million of capital through the issuance of Hybrid Tier - I bonds in the international market on November 09, 2006 as a part of its MTN programme for Euro 1 billion. It had earlier raised USD 150 million through the issuance of Upper Tier II bonds in August 2006.

Transaction highlights:

- 1st and the only bank in India so far to have raised capital through both Hybrid Tier-I and upper Tier-II Instruments in foreign currency.

- Second International Hybrid Debt offering by the Bank following the successful issuance of 15-year subordinated Upper Tier II bond. The current issuance, Hybrid Tier-I, is a perpetual bond with a call option at the end of 10 years.

- Transaction tightly priced at 7.1670 % (equivalent to around L+179 bps over 6 months LIBOR) as on November 08, 2006.

- Sole lead managers for the issue - Barclays Capital.

Transaction Details:

- Amount: USD 46 million
- Security: Perpetual NC 10 Hybrid Tier - I Debt
- Security Ratings: Ba1(Moodys)
- Maturity Date: Perpetual
- Call Date: November 16, 2016
- Coupon: 7.1670%
- Yield: 10 yr T+252.2 bps
- Step-Up: Priced with a fixed rate coupon of 7.1670 % (equivalent to 200 bps over Mid- Swaps) plus a step up of 100 bps at the end of 10 years.
- Trade Date: November 09, 2006
- Settlement Date: November 15, 2006

Source : Equity Bulls

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