UTI Millennium Bonds to raise $ 500 million

MUMBAI, Aug 13: Enthused by the success of State Bank of India (SBI)’s Resurgent India Bonds (RIBs), the Unit Trust of India (UTI) has decided to launch its India Millennium Bonds as soon as it gets the green signal from the Ministry of Finance. The $ 500 million bonds issue is targeted at the non-resident Indians who seek to invest in the Indian equity markets.

Top UTI officials say that a draft plan of the issue has been already prepared and sent to the finance ministry. "The response of the State Bank’s bonds issue would decide ministry’s strategy on the issue. The UTI has recommended to launch its issue by the October-November this year," officials said.

"The overwhelming response received by the RIBs has helped us to finalise our plans. As our target, as compared to RIBs, is very modest, we do not think there would be any problems in marketing this issue," sources add.

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The UTI is looking at both institutional investors as well as retail investors for subscription.

The launch of UTI’s MillenniumFund was announced by the finance minister, Yashwant Sinha in his Union Budget speech of 1997-98. However, unlike SBI’s RIBs, the UTI bond will not offer guaranteed returns.