Financial Daily from THE HINDU group of publications
Wednesday, Sep 29, 2004
Financial Daily from THE HINDU group of publications Wednesday, Sep 29, 2004 |
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Money & Banking
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Financial Institutions IDBI places Rs 100 crore with MFs Our Bureau
Mumbai , Sept. 28 INDUSTRIAL Development Bank of India (IDBI) on Tuesday privately placed floating rate bonds worth Rs 100 crore with a few mutual funds. ICICI Securities arranged the transaction, an IDBI release said here. The bonds have a maturity of three years with an innovative coupon structure in which the underlying benchmark reduces every year. The benchmark for each year will be the corresponding residual maturity of a Government bond. The structure provides the investor with the advantage of matching the benchmark to the residual tenor. The coupon in the first year will be 15 basis points over the annualised yield of a three-year benchmark Government bond. In the second year, it will be 25 basis points over the annualised return from a two-year Government bond and in the third year, it will be 35 basis points over the annualised yield from a one-year Government bond.
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