Icici Hits Bond Issue Target On Fi, Bank Support

The fifth retail bond issue of Industrial Credit Investment Corp of India has managed to cross its target of Rs 300 crore, thanks to last-minute subscription by banks and financial institutions.

ICICI general manager Kalpana Morparia said the issue has received more than Rs 300 crore from 45 centres but declined to give the actual subscription received until yesterday evening. The success of the issue despite volatile market conditions has greatly encouraged ICICI in terms of investor trust and confidence, said Morparia.

Market sources said the issue, which closed for subscription yesterday, received a lukewarm response primarily due to the low yield offered and poor capital market conditions.

The issue, which opened for subscription on December 1, had received Rs 120 crore up to Saturday. Effectively, the FIs bailed out the issue, said a merchant banker.

ICICI offered three options to its investor: a regular income bond, a tax-saving scheme and a money multiplier bond.

The issue had targeted Rs 50 crore from the tax saving scheme and another 250 crore from the other two options.

During the period when the issue was open for subscription, ICICI succeed in raising a sum of Rs 800 crore for five-10 years through its on-tap bond from large institutional investors. ICICI has, therefore, collected over Rs 1,100 crore during the period of issue in line with its requirement, said Morparia.

IDBIs Omnibond series IX, which closed for subscription recently, managed to mobilise just Rs 200 crore against an internal target of Rs 1,000 crore.

However, an undeterred IDBI is going ahead with an ambitious 30-year bonds issue, slated to open in January.