AK Capital bags IFR Asia's India Bond Award 2006

AK Capital Services Ltd has announced that the Company has won IFR Asia's India Bond Award for 2006 for UCO Bank's Rs 1.5 billion perpetual bond issuance. The award was presented to the Company on February 05, 2007 in Hongkong for structuring and placement of India's first perpetual bond issuance from UCO Bank in March 2006, right after RBI released the guidelines for issue of Innovative Perpetual Debt Instruments and Debt Capital Instruments eligible for inclusion as Upper Tier II Capital on January 25, 2006.

The Rs 1.5 billion bonds of UCO Bank rated 'AA' by CRISIL and 'AA-' by CARE were perpetual in nature with a call option at par at the end of 10th year from the Deemed Date of Allotment. The bonds carried an interest rate of 9.50% p.a., payable semi-annually, for first the 10 years and step up coupon rate of 10.00% p.a., payable semi-annually for all the subsequent years if call option is not exercised by the Bank at the end of 10th Year from the Deemed Date of Allotment. The bonds listed on the WDM segment of National Stock Exchange were reckoned as a part of Tier-I Capital of UCO Bank.

Source : Equity Bulls

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