UTI Bank updates on Upper Tier II Unsecured Redeemable Subordinated Debentures Issue

With reference to the earlier announcement dated January 02, 2007 regarding Term Sheet / Addendum dated December 30, 2006 forming part of Shelf Information Memorandum dated September 14, 2006. The Bank had the right to change the issue timetable including the Deemed Date of allotment, UTI Bank Ltd has announced that the Bank has been decided to extent the issue closing date to January 31, 2007 and the deemed date of allotment to February 06, 2007. The details are as follows:

Name of the Issuer - UTI Bank Ltd.

Amount to be raised - Rs 100 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 per Debenture

Issue price - Rs 10,00,000 per Debenture (at par)

Rating - "LAA" by ICRA and "AA (ind)" by FITCH

Coupon Rate - 9.50% 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.

Put / Call Option - 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 10th Year from the Deemed Date of Allotment (exercisable only with RBI approval).

Step up of coupon - 100 bps over and above coupon rate of 9.50% i.e., 10.50% 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 of Allotment.

Record Date - In case of exercise at 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 Ltd (BSE) and National Stock Exchange of India Ltd (NSE).

Minimum Application Size - 10 Debenture and in multiples of 1 Debenture thereafter

Debenture Trustees - The Western India Trustee & Executor Co., Ltd

Registrar & Transfer Agents - Karvy Computershare Pvt Ltd

Issue Schedule:

Issue Opening Date(*) - December 30, 2006

Issue Closing Date(*) - January 31, 2007

Deemed Date of Allotment(*) - February 06, 2007.

(*) 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 prior notice.

Source : Equity Bulls

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