The bonds are rated as 'AA+/Stable' by CRISIL and 'LAA' with Stable outlook by ICRA. The Bonds have a call option to redeem the bonds at par at the end of 10th year and on every interest payment date thereafter (exercisable only with RBI approval), a statement said.
The bonds carry a coupon rate of 11.15 per cent per annum payable annually. The coupon rate will be stepped up to 11.65 per cent per annum thereafter, if the call option is not exercised.
The allotment of the bonds will be completed on September 9, 2008, the deemed date of allotment.