UTI Bank to raise Rs 100 crore thru debentures for Tier II needs

Mumbai, Jan 2 (UNI) UTI Bank has proposed to raise Rs 100 crore with an option to retain oversubscription by issue of Upper Tier II Unsecured Redeemable Subordinated Debentures (Series II).

Informing the BSE, the Bank said it will be having an option to retain oversubscription. Instrument - Only in Demat mode - has a face value of Rs 10 lakh per debenture and issue price also at Rs 10 lakh per debenture (at par) carries a Coupon Rate of 9.50 per cent payable annually and can be redeemed after 15 years from the deemed date of allotment.

The Bank has obtained a rating for its instrument at 'LAA' by ICRA and 'AA (ind)' by FITCH.

The Bank shall have an option for redemption 'ie 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 - 100 bps over and above coupon rate of 9.50 per cent ie, 10.50 per cent per annum, annually if the call option is not exercised by the Bank.

UNI