Conversion of Mandatory Convertible Bonds

Conversion of Mandatory Convertible Bonds

We refer to the outstanding mandatory convertible bonds (BMCB - MSM code) issued in March 2009. Please note that fifty percent of mandatory convertible bonds will be converted into common equity shares on March 20th 2012 as per the terms of the prospectus. The Conversion Price shall be computed at a twenty percent discount to the average closing market price over the preceding 90 calendar day period prior to the conversion date subject to a minimum conversion price equivalent to the face value of the shares.

On the other hand, earlier this year, the Bank had proposed a dividend of 40%, 25% in the form of cash and 15% in the form of bonus shares for the year 2011 to the common equity shareholder. The proposed cash dividend and issuance of bonus shares are subject to formal approval of the shareholders at the Annual General Meeting on March 18, 2012.

As the conversion of bonds will happen after the record date for bonus shares, the average price for the conversion of convertible bonds will be adjusted for the impact of bonus shares.