Issue of Debt

24 Nov 2006 11:52

UTI Bank Limited24 November 2006 ALLOTMENT OF UPPER TIER II UNSECURED REDEEMABLE SUBORDINATED DEBENTURES ON PRIVATE PLACEMENT BASIS We are pleased to inform that the Board of Directors of the Bank have passed aresolution approving Allotment of Upper Tier II Unsecured RedeemableSubordinated Debentures to various investors on private placement basis as theBank's Tier II capital aggregating to Rs. 200 crores. The Debentures are issuedas per term sheet enclosed. The Debentures will be listed on The Bombay Stock Exchange (BSE) and TheNational Stock Exchange (NSE) in India. TERM SHEET Addendum to Shelf Information Memorandum Dt.: 14 September, 2006 Name of the Issuer UTI Bank Ltd. Amount to be raised Rs. 200 crores with an option to retain oversubscription Instrument Upper Tier II Unsecured Redeemable Subordinated Debentures Instrument Form Only in Demat mode Face Value Rs. 10,00,000 (Rupees Ten Lakhs) per Debenture Issue price Rs.10,00,000 per Debenture (at par) Rating 'LAA' by ICRA 'AA (ind)' by FITCH Coupon Rate 9.35% p.a. Coupon Payment Annually Redemption 15 years from Deemed Date of Allotment Upper Tier II instruments shall not be redeemable at the initiative of the holder. All redemptions shall be made only with the prior approval of the RBI. No. Put Option. The Bank shall have an option for redemption "i.e. Call Option" to redeem the Bonds at par at the end of Put / Call Option 10th Year from the Deemed Date of Allotment (exercisable only with RBI approval) Step up of coupon 50 bps over and above coupon rate of 9.35% i.e. 9.85% p.a. annually if the call option is not exercised by the Bank. Day Count basis Interest payable on the Debentures will be calculated on the basis of actual number of days elapsed in a year of 365 or 366 Days as the case may be Interest on Application Money Interest on application money will be same as the Coupon rate (subject to deduction of Tax at Source at the rate prevailing from time to time under the provisions of the Income Tax Act, 1961 or any other statutory modifications or re-enactment thereof) will be paid on application money to the applicants from the date of realisation but excluding the Deemed Date of Allotment. This will be paid within 7 days from Deemed Date of Allotment. Record Date In case of exercise of Call Option record date shall be 10 working days prior to date of call option. Listing The Debentures being offered shall be listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Ltd. (NSE). Minimum Application Size 1 Debenture and in multiples of 1 Debenture thereafter Market Lot 1 and in multiples of 1 thereafter Debenture Trustees The Western India Trustee & Executor Co. Limited Registrar & Transfer Agents Karvy Computershare Pvt. Ltd. Arrangers Citibank N.A., Barclays Bank., Allianze Securities Ltd Issue Schedule :Issue Opening Date(*) 13 November, 2006 Issue Closing Date (*) 22 November, 2006 Deemed Date of Allotment(*) 24 November, 2006 (*) The issuer reserves the right to change the issue timetable including theDeemed Date of Allotment at its sole discretion, without giving any reasons orprior notice. In terms of RBI circular no. DBOD.No.BP.BC.57/21.01.2002/ 2005-2006 datedJanuary 25, 2006, on enhancement of banks' capital-raising options coveringnorms for raising of instruments eligible for inclusion under Upper Tier-IIcapital, these Bonds shall be subjected to a lock-in clause in terms of whichthe Bank shall not be liable to pay interest if (a) the Bank's CRAR is below theminimum regulatory requirement prescribed by RBI or (b) the impact of suchpayment results in Bank's Capital to Risk Assets Ratio (CRAR) falling below orremaining below the minimum regulatory requirement prescribed by the RBI.However, the Bank may pay interest with the prior approval of RBI when theimpact of such payment may result in net loss or increase the net loss providedCRAR remains above the regulatory norm. The interest amount due and remainingunpaid may be allowed to be paid in the later years subject to the Bankcomplying with the above regulatory requirement. This information is provided by RNS The company news service from the London Stock Exchange