UTI Bank proposes to raise Rs 200 crores by issue of Upper Tier II Unsecured Redeemable Subordinated Debentures

UTI Bank Ltd has announced that the Bank now proposes to raise Rs 200 crores with an option to retain oversubscription by issue of Upper Tier II Unsecured Redeemable Subordinated Debentures. The following Term Sheet / Addendum forming part of Shelf Information Memorandum dated September 14, 2006 is given below:

Name of the Issuer - UTI Bank Ltd.

Amount to be raised - Rs 200 crores with an option to retain oversubscription.

Instrument - Upper Tier II Unsecured Redeemable Subordinated Debentures.

Instrument Form - Only in Demat mode.

Face Value - Rs 10,00,000 per Debenture

Issue price - Rs 10,00,000 per Debenture (at par)

Rating - "LAA" by ICRA and "AA (ind)" by FITCH

Coupon Rate - 9.35% p.a.

Coupon Payment - Annually

Redemption - 15 years from Deemed Dote of Allotment; Upper Tier II instruments shall not be redeemable at the initiative of the holder; All redemptions shall be made only with the prior approval of the RBI.

Put / Call Option - No. Put 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 (exercisable only with RBI approval).

Step up of coupon - 50 bps over and above coupon rate of 9.35% i.e. 9.85% p.a. annually if the call option is not exercised by the Bank.

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 realisation but excluding the Deemed Date of Allotment. This will be paid within 7 days from Deemed Date of Allotment.

Record Date - In case of exercise at Call Option record date shall be 10 working days prior to date of call option.

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 - Citibank N.A., Barclays Bank., Allianze Securities Ltd and UTI Bank Ltd.

Issue Schedule:

Issue Opening Date(*) - November 13, 2006

Issue Closing Date(*) - November 22, 2006

Deemed Date of Allotment(*) - November 24, 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

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