IDBI floats Rs 200-crore Flexibond issue

Mumbai: IDBI has hit the market with a Rs 200-crore Flexibond issue. The financial institution has secured an AA-rating for the unsecured bonds, which are rated by three agencies like Crisil, Fitch and ICRA. The issue opened for public subscription on 26 July 2002 and closes on 16 August 2002.

The issue has four investment options Regular Income Bond, Money Multiplier Bond, Retirement Bond and Growing Interest Bond under its Flexibond issue catering to different needs of investors.

While Regular Income Bond, Money Multiplier Bond and Retirement Bond has no put or call option, Growing Interest Bond offers an exit option after two years. Regular Income Bond with a face value of Rs 5,000 has six investment options.

The minimum investment under each option varies between Rs 10,000 and Rs 25,000. The coupon on each option ranges from 9 per cent to 9.75 per cent and the payment of interest is compounded monthly, quarterly and annually. The three options have a five-year tenure and the other three have a seven-year maturity. The yield to maturity varies between 9.38 per cent and 9.75 per cent.

Money Multiplier Bond, with an issue price Rs 5,000, has a minimum investment of one bond. The bond has three investment options. Option A has a maturity of five years and two months, Option B has seven years and five months and Option C has nine years and seven months.

Option A has a maturity value of Rs 8,000, Option B has 10,000 and Option C has 12,500 with a yield to maturity of 9.51 per cent, 9.79 pre cent and 10.03 per cent, respectively. Retirement Bond, with a face value of Rs 5,000, has a minimum commitment of Rs 25,000 under its two investment options.