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News Release
January 07, 1999
In preparation for its next
issue of ICICI Safety Bonds, scheduled to open on January 21, 1999, ICICI
has taken a decision to offer the same interest rates as it had in the
previous issue. Contrary to speculation in the market, following the reduction
in small savings interest rates, ICICI has taken a view that in the short-term,
interest rates are not expected to change significantly. Therefore, household
investors should continue to have an opportunity to plan their finances
while availing of the attractive returns.
In the last Safety Bonds
issue in December, the interest rate for a five-year Regular Income Bond,
with annual interest payments, was pegged at 13.75%. While keeping this
rate and maturity unchanged, ICICI now also proposes to offer an option
whereby, a seven-year Regular Income Bond will provide an interest rate
of 14% p.a. payable annually.
A new option of 18 years
Money Multiplier Bonds would also be made available, for which the yield
would be pegged at 14% p.a.
The interest rates on the
various instruments to be offered would be as follows :
REGULAR INCOME BOND
| Option |
I |
II |
III |
IV |
| Redemption Period |
5 years |
5 years |
5 years |
7 years |
| Interest Rate (%) p.a. |
13.00 |
13.25 |
13.75 |
14.00 |
| Frequency of interest payment |
Monthly |
Semi-Annual |
Annual |
Annual |
| Yield (%) p.a. |
13.80 |
13.70 |
13.80 |
14.00 |
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TAX SAVING BONDS
| Option |
I |
II |
III |
| Tax Benefit |
Sec 88 |
Sec 88 |
Sec 54 EA |
| Redemption Period |
3 years |
3 years 3 months |
3 years |
| Interest Rate (%) (payable
annually) |
12.50 |
Zero Coupon Bond (Yield
12.6) |
12.50 |
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ENCASH BOND
| Year |
1st
|
2nd
|
3rd
|
4th
|
5th
|
| Applicable rate of interest for respective
year (%) p.a. |
11.00
|
12.00
|
14.00
|
15.50
|
18.00
|
| Yield (%) p.a.# |
11.00
|
11.50
|
12.20
|
12.90
|
13.70
|
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# The yield to the investor
if he opts for encashment at the -end of the Ist, 2nd, 3rd, 4th and 5th
year
MONEY MULTIPLIER BOND
(in the nature of Deep Discount Bond)
| Option |
I |
II |
| Issue Price (Rs.) |
4,000/- |
4,700/- |
| Face Value (Rs.) |
8,000/- |
50,000/- |
| Redemption Period |
5 yrs 4 months |
18 years |
| Yield (%) p.a. |
13.90 |
14.00 |
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The next public offer of
ICICI Safety Bonds is proposed to be open for subscription, from January
21, 1999 to February 9, 1999. Apart from the above four Bond products,
ICICI would also offer a new Bond instrument, which is currently being
finalized.
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