ICICI comes out with bond issue

It is offering for public subscription, unsecured redeemable bonds in the nature of debentures aggregating Rs 300 crore with a right to retain oversubscription of upto Rs 300 crore. The issue will close on May 19, 1998.

ICICI Safety Bonds April `98 offer various options under three types of bonds – regular income bond, money multiplier bond (in the nature of deep discount bond) and tax saving bond.

Under the regular income bond, to avail of regular income on a quarterly, half-yearly or annual basis, savings can beplaced for five years, under option I, II or III, respectively. The savings generate a regular income at the rate of 13.50 per cent per annum under option III, 13 per cent per annum under option II and 12.75 per cent per annum under option I. A minimum of Rs 5000 should be placed under option III, while the minimum application amount is Rs 10,000 under option II and Rs 15,000 under option I.

Under the money multiplier bond, savings of Rs 4,000 (and in multiple amounts of Rs 4000 thereafter) can be placed under the two options available. The savings under option I yield 13.4 per cent (annualised) thus doubling the savings in five years and six months. Option II also yields 13.4 per cent (annualised, multiplying the savings by four times in 11 years.