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Thursday, Mar 14, 2002

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ICICI cuts rate on Safety Bonds

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MUMBAI, March 13

CLOSE on the heels of IDBI lowering returns on its retail debt offering, Flexibonds, ICICI has slashed the interest rates on its Safety Bonds by a quarter percentage point.

In the latest issue of Safety Bonds, the ninth this year, ICICI has reduced interest rates across all instruments by 25 basis points. The Tax-Saving Bond, the largest-selling instrument in the Safety Bond family, would now offer a lower return of 8.75 per cent for three-year maturity. For a six-year maturity, the rate has been pared to 9 per cent from 9.25 per cent.

The institution is offering multiple options under six instruments — Tax-Saving, Encash, Monthly Income, Regular Income, Money Multiplier, Children Growth — to collect an aggregate of Rs 600 crore with a right to retain over-subscription of a like amount.

This year, the financial institution has collected Rs 2,442 crore through seven Safety Bond issues. The collections of the last issue, the eighth, that closed on March 4 are not yet available.

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