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Terms of the Bonds Earn 13.7%* p.a. for 5 years Face Value Rs. 5,000/- Redemption period : 5 years Interest payment :
** Early encashment facility, to original individual allottees, at any of the specified branches of ICICI Bank Banking Corporation Limited any time after one year from the Deemed Date of Allotment till one month prior to Redemption Date. Invest for 3 years and Save Tax
u/s 88
* Subject to TDS as per the then prevailing tax laws. ** Percentage of Capital Gains in amount invested (assuming the amount invested is equal to sales consideration). @ Tax Saving Bond-Option II offering benefits under Section 88 of the Income-tax Act, 1961, is in the form of a Deep Discount Bond, hence no annual interest is payable. ICICI Bank would ensure full and firm allotment to all valid applicants for the Tax Saving Bond. Earn 13.0%* p.a. with Monthly Income
Option Choose any of the following options:
Money Multiplier Bond Double * your money in 5 years
4 months Choose any of the following options : Option I ----- Invest Rs. 4,000/- and receive twice* your money in 5 years 4 months. Option II ----- Invest Rs. 4,000/- and receive four times* your money in 10 years 7 months Option III ----- Invest Rs. 4,000/- and receive twenty five times* your money in 24 years 5 months Annualized Yield to Investor under various options:
* Subject to TDS as per the then prevailing tax laws.
III. Terms of the Present Issue ICICI Bank is offering for Public Subscription the fifth tranche of Unsecured Redeemable Bonds in the nature of Debentures for raising Rs. 300 crore with a right to retain oversubscription up to Rs. 300 crore. The Bonds being offered are subject to the provisions of the Act, the Memorandum and Articles, the terms of this Prospectus, Application Form and other terms and conditions as may be incorporated in the Trustee Agreement, Letter of Allotment and/or Bond Certificates. Over and above such terms and conditions, the Bonds shall also be subject to laws as applicable, guidelines, notifications and regulations relating to the issue of capital and listing of securities issued from time to time by SEBI/the Government of India/RBI and/or other authorities and other documents that may be executed in respect of the Bonds. Nature of Bonds ICICI Bank is offering for subscription for cash the following four types of Bonds in the nature of Debentures.
Out of the above Bonds, Regular Income Bond Options I and III, Tax Saving Bond Option IV and all Options of Money Multiplier Bond would constitute direct, unsecured and subordinated obligations of the Company. (See also status on page 12 of the Prospectus) Face Value : Rs. 5,000/- Redemption : At Face Value i.e. Rs 5,000/- at the end of 5 years from the Deemed Date of Allotment Interest : Interest will be payable annually at the following rates :
Annualized Yield to Maturity (YTM) at the end of each year on Early Redemption/Redemption :
Payment of Interest Interest will be paid on June 30, each year at the rates applicable to each of the periods mentioned in the above table. The first interest payment will be made on June 30, 1999 for the period commencing from the Deemed Date of Allotment and the last interest payment will be made at the time of Redemption of the Bond on a pro rata basis. Also refer to para on Electronic Clearing Service on Page 12 of the Prospectus. Early Redemption at the option of the Bondholders (Encash Facility) An original individual allottee has the option of Early Redemption of the Bonds(“Early Redemption”) at any time after the expiry of 12 months from the Deemed Date of Allotment till one month prior to the Redemption Date (“Relevant Period”), at any of following offices of ICICI Bank Banking Corporation Limited (“Specified Branch”) :- Ahmedabad (JMC House, Opp. Parimal Gardens, Off C. G. Road), Bangalore (Raheja Towers, M.G. Road), Calcutta (Rasoi Court, Sir R N Mukherji Road; Ballygunge), Chandigarh (Madhya Marg, Sector 9-D), Chennai (1, Cenotaph Road; 110, Prakash Presidium, Nungambakkam High Road; Armenian Street; Vidya Mandir Senior Secondary School, IV Main Road, Gandhinagar, Adyar), Cochin (Fotofast House, M.G. Road), Coimbatore (Trichy Road), Goa (M L Furtado Road, Margao; Near EDC, Dr. Atmaram Borkar Road, Panaji; Garden Centre, Phase II Mapuca), Gobichettipalayam (Kutchery Street), Gurgaon (HUDA Shopping Centre Market Complex, Sector 14; Hero Honda Motors Ltd., 37 Km Stone, Delhi-Jaipur Highway, Sector 33), Hyderabad (Opp. Institute of Engineers, Rajbhawan Road; CARE Hospital, Exhibition Road, Nampalli), Jaipur (Sriji Towers, C-99 Subhash Scheme), Ludhiana (SCO, 146, 147, Feroz Gandhi Market), Mangalore (Bharat Building, PM Rao Road), Mumbai (Free Press House, Nariman Point; Bhayander (W); Abhilasha, Punjabi Lane, Borivali (W); 163, Backbay Reclamation; Kailash Plaza, Vallabh Baug Lane, Ghatkopar (E); Sagar Avenue, S.V. Road, Andheri (W); Galleria Shopping Mall, Hiranandani Gardens, Powai; Surya Shopping Centre, “Shristi” Sector V, Mira Road; Poonawadi, Dr. Ambedkar Road, Dadar (E); Vimal Shopping Centre, Vasai Road (W); Maratha Mandir Annex, Mumbai Central; MICASA, St. Theresa Road, Off. Turner Road, Bandra (W), Nasik (Saharanpur), New Delhi (Phelps Bldg., A Block, Connaught Place; Greater Kailash 1, N Block Market; Indian Spinal Injuries Centre, Opp. Sector C, Vasant Kunj; Sincere Tower IV, Community Centre, Preet Vihar), Noida (G31, 32 Sector 18), Periyanayakanpalayam (Pricol, Mettupalayam Road), Pune (Shangrila Gardens, Bund Garden Road), Thane (Palm Court, Ram Maruti Road, Navpada), Vadodara (Race Course Circle, Alkapuri) ICICI Bank may specify more branches of ICICI Bank Banking Corporation Limited for this purpose. A Bondholder who is an original individual allottee may at any time during the Relevant Period approach any of the above mentioned branches of ICICI Bank Banking Corporation Limited for Early Redemption of the Bond at its Face Value of Rs. 5,000/-. Each Bondholder can redeem up to 50 Bonds per day. The Bondholders will not be permitted to encash the Bond at the Specified Branches in the following cases : In the aforesaid cases, Bondholder(s) may send their request, along with the Bond Certificates duly discharged, and in case of a minor attaining majority, with proof of his having attained majority, for Early Redemption to ICICI Bank Investors’ Services Limited, Maratha Mandir Annex, Dr. A R Nair Road, Mumbai Central, Mumbai 400 008 (ICICI Bank Services) or to such person at such address as may be notified by ICICI Bank from time to time for this purpose. In the event the Early Redemption facility is withdrawn at any or all of the Specified Bank Branches, the Bondholder shall be able to exercise the option of Early Redemption at ICICI Bank Services or such person at such address as may be notified by ICICI Bank from time to time for this purpose. Investors should note that they can exercise the option of Early Redemption at any of the Specified Branches or at ICICI Bank Services as mentioned above. However, payment on final Redemption of the Bond will be done at ICICI Bank in accordance with the procedure mentioned under “Procedure for Redemption by Bondholder”. Procedure for Early Redemption of the Bond In case the Bondholder(s) desire to exercise the option of Early Redemption, the sole/first holder should submit within the Relevant Period the Bond Certificate(s) duly discharged by the Sole/all the joint holders (signed at the reverse of the Bond Certificate(s)) along with the Early Redemption Form (available at the Specified Branches) to any of the Specified Branches, which in turn would pay to the Bondholder the Face Value of the Bond. In case of investors residing at places where there is no branch of ICICI Bank Banking Corporation Limited, the Bondholder may exercise the option of Early Redemption of the Bond by directly sending it by Registered Post acknowledgment due to ICICI Bank Services or to such person at such address as may be notified by ICICI Bank from time to time for this purpose. Such Bondholders should submit their requests in writing along with the duly discharged Bond Certificate(s) by Sole/all the joint holders (signed at the reverse of the Bond Certificate(s)) so that ICICI Bank Services receives it within the Relevant Period. Payment on Early Redemption An investor who exercises the option of Early Redemption during Relevant Period, will receive the Face Value of the Bond by way of cheque/pay order etc., on presentation of duly discharged Bond Certificate to the Specified Branch. An investor who sends his duly discharged Bond Certificate along with the request for Early Redemption by post to ICICI Bank Services or such person at such address as may be notified by ICICI Bank from time to time for this purpose, will be sent the Face Value of the Bond by way of cheque/pay order within 15 days of the receipt of such request by ICICI Bank Services or by such person at such address as may be notified by ICICI Bank from time to time for this purpose. In case the Bondholder exercises the option of Early Redemption of the Bond during the Relevant Period, the interest for the broken period i.e. from the time of payment of interest for the previous year till the date of receipt of Bond certificate by Specified branch/ICICI Bank Services or such person at such address as may be notified by ICICI Bank from time to time, will be paid to the Bondholder by ICICI Bank. A Bondholder may submit Form 15F at the time of Early Redemption with the specified branch for avoiding deduction of tax at source or for deduction of tax at lower rate. ICICI Bank would endeavour to dispatch the interest warrant within a period of 15 days from the date of the Early Redemption. If an Investor wishes for Early Redemption after the Record Date/Book Closure for payment of interest but before the due date of interest payment, ICICI Bank would assume that the interest warrant has already been dispatched to the Investor and no payment on account of accrued interest would be made. In such cases ICICI Bank would deduct from the Face Value a sum equal to interest for the period from the date of Early Redemption to the due date of payment of Interest. Upon dispatching the amount(s) as specified above in respect of the Bonds to the Bondholders, ICICI Bank shall have no further liability towards those Bondholder(s) in respect of the Bond(s) and all rights vested in the Bondholder(s) would stand extinguished. See also “Common Features, Terms and Conditions of the Bonds”. Investors can avail of rebate under Section 88 or tax benefits under Section 54EA or Section 54EB of the Income-tax Act, 1961, by investing in Bonds issued by a public financial institution for the purpose of deploying these funds towards infrastructure projects. The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India has vide its notification nos. 10278 and 10279 dated March 4, 1997 declared the Bonds issued by ICICI Bank as specified assets for the purposes of Section 54EA and 54EB of the Income-tax Act, 1961 and vide its Notification F No. 178/94/97-ITA-I dated August 10, 1998 declared the Tax Saving Bond Option I and Option II as eligible securities for the purposes of Section 88 of the Income-tax Act, 1961. Investors desirous of availing of rebate under Section 88 or tax benefits under Sections 54EA or 54EB of the Income-tax Act, 1961 from payment of tax on capital gains can invest in the relevant option of this Bond. The investor may choose any of the following Options in respect of subscription for Tax Saving Bond.
** Subject to TDS as per the then prevailing tax laws. @ Tax Saving Bond Option II is in the nature of a Deep Discount Bond, hence no annual interest is payable. Note: Investors are requested to note the following: (i) Investors applying for Option I and Option II will be able to avail of rebate only under Section 88 and not tax benefit under Section 54EA/54EB in respect of the amount subscribed to. Investors assessable as individuals under the Income-tax Act, 1961, would be entitled to avail rebate for investment upto Rs.70,000/- (ii) Investors applying for Option III will be able to avail of benefit only under Section 54EA and not under Section 88/54EB in respect of the amount subscribed to. (iii) Investors applying for Option IV will be able to avail of benefit only under Section 54EB and not under Section 88/54EA in respect of the amount subscribed to. Payment of Interest Interest will be paid on June 30 each year, for all the options except Option II. The first interest payment will be made on June 30, 1999 for the period commencing from the Deemed Date of Allotment and the last interest payment for the remaining period will be made on a pro-rata basis at the time of Redemption of the Bond. See also Electronic Clearing Services on page 12 of the Prospectus. Tax Saving Bond Option II is in the nature of Deep Discount Bond. This Bond would be issued at an Issue Price of Rs. 5,000/- each and would be redeemed at the Face Value of Rs. 7,350/- at the end of 3 years 3 months from the Deemed Date of Allotment. Hence, no annual interest payment will be made. Taxation Tax Saving Bond is an eligible security for the purpose of Sections 88, 54EA and 54EB of the Income-tax Act, 1961, in accordance with the option opted for. Subscription to Option I and II would entitle individuals and HUFs to a rebate from income tax @ 20 per cent (@ 25 per cent in case of authors, playwrights, artists, musicians, actors or sportsmen) of the aggregate of the sums paid or deposited up to Rs.70,000/- in a financial year by the taxpayer out of his income chargeable to tax as prescribed in sub-section 2 of Section 88 of the Income-tax Act, 1961. The attention of the investor is drawn to the fact that the Issue Price of Tax Saving Bond Option II would be entitled for benefits under Section 88 and not the Face Value of the Bond. To avail benefit under Section 88, such investment needs to be held for a period of three years. Tax Saving Bond Option II would be in the nature of a Deep Discount Bond. As regards the difference between the Issue Price and Face Value of the Tax Saving Bond Option II the Central Board of Direct Taxes vide its clarifications dated March 12, 1996 and May 23, 1996 on similar issue of other companies, has expressed the view that this will be treated as interest income assessable under the Income-tax Act, 1961. On transfer of Bonds before maturity, the difference between the sale consideration and the Issue Price will be treated as capital gains/loss if the assessee has purchased them by way of investment. However, in the case of an assessee who deals in purchase and sale of Bonds, securities etc., the profit or loss shall be treated as trading profit or loss. The difference between the Issue Price and the Face Value will be treated as interest income assessable under the Income-tax Act, 1961 and therefore, tax will have to be deducted at source at the time of redemption under the relevant provision of the Income-tax Act, 1961. ICICI Bank may offer market making facility in respect of these Bonds after the expiry of three years from the Deemed Date of Allotment. Any long-term capital gains arising in the hands of the investor from the sale of a capital asset and invested, within a period of six months from it having arisen, in such approved instruments shall be eligible for an exemption from payment of Capital Gains Tax to the extent specified under the relevant section. To avail benefit under Section 54EA, the investor is required to invest the net sales realization in the approved securities which needs to be held for three years. To avail benefit under Section 54EB, the investor is required to invest the capital gains arising, in the approved security and such investment needs to be held for seven years. If any investor claiming benefit under Sections 88, 54EA or 54EB of the Income-tax Act, 1961 pledges these Bonds as eligible security for any loan taken by him during three/three/seven years from the Deemed Date of Allotment for Section 88/Section 54EA/Section 54EB respectively, he/she would stand to lose the relevent tax rebate/benefits and would be required to pay tax as per the provisions of the said sections. The CBDT has clarified that for the purposes of Sections 54EA and 54EB, investors would be allowed to obtain benefit under these sections if the application is made within the stipulated time limit of 6 months to the extent of allotment made. See also “Common Features, Terms and Conditions of the Bonds”. Face Value : Rs. 5,000/- Redemption : At Face Value, i.e., Rs.5,000/- at the end of 5 years from the Deemed Date of Allotment The investors can choose any of the following three options in respect of payment of interest.
Option III (Annual Interest) Interest will be paid on June 30 each year. The first interest payment will be made on June 30, 1999 for the period commencing from the Deemed Date of Allotment and the last interest payment will be made at the time of Redemption of the Bond on a pro-rata basis. Also refer to para on Electronic Clearing Service on Page 12 of the Prospectus. See also “Common Features, Terms and Conditions of the Bonds”. 4. Money Multiplier Bond (In The Nature Of Deep Discount Bond) Each Money Multiplier Bond in the nature of Deep Discount Bond will have different Face Values under each Option and will be issued at a discounted price of Rs. 4000/- each Minimum Application : One Bond The investors can choose any of the following options (as per the Table below) in respect of the Money Multiplier Bond:
See also “Common Features, Terms and Conditions of the Bonds”. Common Features, Terms And Conditions Of The Bonds Interest on Application Money @5.00 per cent p.a. on the amount allotted for the period commencing from the 3rd day after the date of deposit of Application Form with the Bankers to the Issue till a day prior to the Deemed Date of Allotment. Interest on application money will be paid to all the allottees, who have paid the application money by way of cheque/cash/demand draft, on the amount allotted at the rate of 5.00 per cent p.a. Such interest will be paid for the period commencing from the third day after the date of lodgment of the Application Form at the bank branches listed in the Application Form till a day prior to the Deemed Date of Allotment. The date of receipt of the Application Form as given by the bank branch will be considered as final. In case of applications by minors, the interest warrants for interest on application money will be issued in the name of the applicant along with the name of the guardian. However, there will be no mention of the bank account number. An investor should not deduct the interest on application money receivable by him from the amount payable on application. The interest warrants will be dispatched along with the Letter of Allotment/Bond Certificates, at the sole risk of the applicant, to the sole/first applicant as mentioned in the Application Form. Investors applying through stockinvest will not be entitled to any interest on application money. No interest on application money will be paid on the amount refunded, if any. In case the cheque payable at par facility is not available, ICICI Bank reserves the right to adopt any other suitable mode of payment. Deemed Date of Allotment The Deemed Date of Allotment for the issue has been fixed as 30 days from the date of closure of the Issue or date of utilisation of proceeds, whichever is earlier. All benefits relating to the Bonds will be available to the investors from the Deemed Date of Allotment. The actual allotment may occur on a date other than the Deemed Date of Allotment. Market Lot The market lot will be one Bond ("Market Lot"). Terms of Payment
Applicants should apply for any or all types of Bonds (any/all options) using the same Application Form. The maximum application amount under the Issue cannot exceed the size of the Public Issue i.e. Rs.300 crore. Payment of Interest on Encash Bond, Tax Saving Bond (other than Option II) and Regular Income Bond. Payment of interest on Encash Bond, Tax Saving Bond (other than Option II) and Regular Income Bond will be made to those Bondholders whose names appear in the register of Bondholders (or to first holder in case of joint-holders) as on Record Date/Book Closure Date to be fixed by the Company for this purpose from time to time. Buyers of the Bonds are advised to send the Bond Certificate(s) to the Company/Registrar or to such persons as may be notified by the Company from time to time, along with a duly executed transfer deed or other suitable instrument of transfer as may be prescribed by the Company for registration of transfer of the Bond(s). Otherwise interest will be paid to the seller and not to the buyer. In such cases, claims in respect of interest, if any, shall be settled inter se amongst the parties and not against the Company. In case of Regular Income Bond Option I, the buyers of the Bond shall have to send Bond Certificate(s) together with duly executed transfer deeds or other suitable instrument of transfer as may be prescribed by the Company and unencashed post-dated cheques (if any) to be transferred in his/her name. Otherwise interest will be paid to the seller and not the buyer. In such cases, claims in respect of interest, if any, shall be settled inter se amongst the parties and not against the Company. In case of sale by or to companies, bodies corporate, societies registered under the applicable laws in India, Trusts, Provident Funds, Superannuation Funds, Gratuity Funds, Scientific and/or Industrial Research Organizations, Commercial Banks, Cooperative Banks, Regional Rural Banks or NRIs, certified true copy of the Power of Attorney or such other authority as may be acceptable to the Company must be lodged separately at the office of the Registrar/the Company at the time of registration of Bonds. Interest payment will be made by cheques payable at par at such places as ICICI Bank may deem fit. In case the cheque payable at par facility is not available, ICICI Bank reserves the right to adopt any other suitable mode of payment. The Company intends to offer the facility of Electronic Clearing Service (ECS) to help small investors. The terms of this facility (including towns where this facility would be available) would be as prescribed by RBI. Refer to the para on “Electronic Clearing Facility for Payment of Interest” appearing on this page. Payment of Interest subject to Deduction of Tax at Source The interest paid on application money, interest on refund (in case of delay beyond 30 days from the date of closure of the subscription list), interest on Encash Bond,Tax Saving Bond (other than Option II) and Regular Income Bond will be subject to deduction of tax at source at the rates prevailing from time to time under the provisions of the Income-tax Act, 1961 or any statutory modification or re-enactment thereof. An investor who is entitled in accordance with the prevailing income tax laws to exemption from deduction of tax at source in respect of such interest income should quote the name of the sole/first holder, Bondholder number and the distinctive numbers of bonds held and submit: (a) a certificate from his Assessing Officer specifying that no tax should be deducted at source on the Bonds or (b) a declaration in the prescribed Form 15F verified in the prescribed manner to the effect that the tax on his estimated income during the previous year in which such income is included will be nil, at the office of the Registrar to the Issue. All investors (other than companies and firms) claiming non deduction of tax at source from interest on application money should submit Form 15H at the time of submitting the Application Form. Other investors need to submit Form 15AA or such suitable Certificate at the time of submitting the Application Form. Resident individuals and entities assessable as individuals under the provisions of the Income-tax Act, 1961 entitled to avail of the exemption from deduction of tax at source, on interest on the Bonds, should submit Form 15F after receipt of confirmation of allotment. Other investors need to submit Form 15AA after receipt of confirmation of allotment. Form 15F/15AA, as the case may be should be submitted quoting the name of the sole/First holder, bondholder number and the distinctive numbers of bonds held to the office of the Registrar to the Issue mentioned elsewhere in this Prospectus. The Investors need to submit Form 15F/15AA each year. Tax Treatment of Money Multiplier Bond and Tax Saving Bond Option II (in the nature of Deep Discount Bond) As regards the difference between the Issue Price and Face Value of the Money Multiplier Bond and Tax Saving Bond Option II in the nature of Deep Discount Bonds, the Central Board of Direct Taxes vide its clarifications dated March 12, 1996 and May 23, 1996 on similar issues of other companies, has expressed the view that this will be treated as interest income assessable under the Income-tax Act, 1961. On transfer of Bonds before maturity, the difference between the sale consideration and the Issue Price will be treated as capital gains/loss if the assessee has purchased them by way of investment. However, in the case of an assessee who deals in purchase and sale of Bonds, securities etc., the profit or loss shall be treated as trading profit or loss. The difference between the Issue Price and the Face Value will be treated as interest income assessable under the Income-tax Act, 1961, and, therefore, tax will have to be deducted at source at the time of redemption under the relevant provision of the Income-tax Act, 1961. See also “Tax Benefits” on page 17 of the Prospectus. Electronic Clearing Service for Payment of Interest Reserve Bank of India has introduced the concept of Electronic Clearing Service (ECS) through the clearing house to obviate the need for issuing and handling paper instruments and thereby facilitate improved customer service. This facility would be available in cities where RBI provides such facility. As per the guidelines issued by RBI in this regard, the investor is required to give his mandate for ECS with all the details as per the format given. This will help the Company to credit the interest amount to the investor’s account with the concerned bank at the earliest. The investors will also have the convenience of direct credit to their bank account without the need to receive interest warrants by post and deposit the same in their bank accounts. The bank branch will credit the investor’s account and indicate the credit entry with ECS in the passbook/statement of account. Subsequent to dispatch of the Bond Certificate(s)/Letter of Allotment, the Company/Registrar will send to the investor a form to be duly filled up by those investors desiring to avail the facility of ECS. Investors who have not opted for ECS will be sent interest warrants by post. If an investor who has
opted for ECS sells the Regular Income Printing of Bank Particulars on Interest Warrants As a matter of precaution against possible fraudulent encashment of interest warrants due to loss or misplacement, investors are advised to give particulars of their bank account viz., (a) name of the bank and branch, (b) type of account (savings/current); and (c) account number in the app | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||