Proceeds Of Icici Bonds To Be Invested In Andhra

ICICI's Rs 800 crore bond issue, which opened on Monday, is a state-specific issue, with the option of investing the proceeds in Andhra Pradesh. This is the first time that such a bond offering is being made.

ICICI said there was an option to invest the proceeds of the issue in Andhra Pradesh. It said, "Certain investors have expressed interest in investing in units located in Andhra Pradesh and ICICI is facilitating the process by providing the investors an opportunity to invest their savings for this purpose."

The bulk of the proceeds is expected to be invested in large infrastructure projects in the state.

The FI has, in fact, asked investors to indicate in the application form their opinion on investing funds in Andhra Pradesh.

At the time of initial deployment (ie within a period of one year from the deemed date of allotment) of the resources raised in this category, preference would be given to projects located in Andhra Pradesh, the FI said.

ICICI pointed out that pending deployment of the proceeds in Andhra, the FI may, at its sole discretion, deploy these funds in any other suitable manner.

The issue of unsecured redeemable bonds in the nature of debenture aggregating Rs 400 crore has a green shoe option of Rs 400 crore.

The issue has the highest rating from all the three credit rating agencies _ Icra, Crisil and CARE.

The issue comprises four types of bonds _ encash bonds, tax saving bond, regular income bond and money multiplier bond.

This is the fourth tranche of Rs 400 crore with a right to retain oversubscription up to Rs 400 crore being made by the FI.

ICICI has the blanket approval to raise Rs 3000 crore with a green shoe option of another Rs 3,000 crore.

The remaining Rs 1,700 crore with a right to retain oversubscription 100 per cent may be raised in one or more tranches in future but within the stipulated 365 days from the date of Sebi's observation letter dated March 25, 1998.