UTI Bank Limited
24 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 a
resolution approving Allotment of Upper Tier II Unsecured Redeemable
Subordinated Debentures to various investors on private placement basis as the
Bank's Tier II capital aggregating to Rs. 200 crores. The Debentures are issued
as per term sheet enclosed.
The Debentures will be listed on The Bombay Stock Exchange (BSE) and The
National Stock Exchange (NSE) in India.
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
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
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 the
Deemed Date of Allotment at its sole discretion, without giving any reasons or
In terms of RBI circular no. DBOD.No.BP.BC.57/21.01.2002/ 2005-2006 dated
January 25, 2006, on enhancement of banks' capital-raising options covering
norms for raising of instruments eligible for inclusion under Upper Tier-II
capital, these Bonds shall be subjected to a lock-in clause in terms of which
the Bank shall not be liable to pay interest if (a) the Bank's CRAR is below the
minimum regulatory requirement prescribed by RBI or (b) the impact of such
payment results in Bank's Capital to Risk Assets Ratio (CRAR) falling below or
remaining below the minimum regulatory requirement prescribed by the RBI.
However, the Bank may pay interest with the prior approval of RBI when the
impact of such payment may result in net loss or increase the net loss provided
CRAR remains above the regulatory norm. The interest amount due and remaining
unpaid may be allowed to be paid in the later years subject to the Bank
complying with the above regulatory requirement.
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