UTI Bank Updates on Upper Tier II Unsecured Non-Convertible Redeemable Debentures

UTI Bank Ltd has announced about the following:

Private Placement of Unsecured Non-Convertible Redeemable Debentures in the nature Upper Tier II Debentures and / or Subordinated Tier II Debentures upto an amount of Rs 970 crores in one or more tranches, subject to the proviso that the latter would not exceed Rs 303 crores.

The Shelf Information Memorandum dated March 14, 2007, and Term Sheet for raising Rs 50 crores Subordinated Tier II Capital with an option to retain oversubscription. The Bank had the right to change the issue timetable including the Deemed Date of allotment.

The Bank has been decided to extend the issue closing date to March 28, 2007 and the deemed date of allotment to March 30, 2007.

Revised Term Sheet

Addendum to Shelf information Memorandum Dated: March 14, 2007

Amount - Rs 50 crores with an option to retain oversubscription.

Face Value - Rs 10,00,000 per Debenture

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

Security - Unsecured Redeemable Non Cumulative Subordinated Tier II Debenture

Rating - 'LAA+' by ICRA

'AA +(ind)' by FITCH

Coupon Rate - 10.10% p.a.

Coupon Payment - Annually

Maturity - 120 months from Deemed Date of Allotment

Put and Call Option - Nil

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.

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

Terms of Subscription - Pari passu among themselves and with other subordinated indebtedness of UTI Bank Ltd., and subordinate to the claims of all other creditors and depositors of UTI Bank Ltd., as regards repayment of principal and interest by the Issuer.

Debenture Trustees - The Western India Trustee & Executor Co., Ltd.

Registrar & Transfer Agents - Karvy Computershare Pvt Ltd.

Issue Schedule:

Issue Opening Date(*) - March 15, 2007

Issue Closing Date(*) - March 28, 2007

Deemed Date of Allotment(*) - March 30, 2007.

(*) 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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