AK Capital Services has won International Financing Review (IFR) Asia’s India Bond Award for the year 2006. AK Capital has won the award for structuring and placing Rs. 1500 crores worth of perpetual bond issuance from UCO Bank in March 2006.
The UCO Bank transaction was India’s first perpetual bond issuance, after Reserve Bank of India issuing guidelines for same. These instruments are eligible for inclusion as Tier-I capital of banks. AK Capital, one of India’s leading debt arrangers, received this award in Hong Kong on February 5, 2007.
The Rs. 1500 crore-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% pa, payable semi-annually, for the first 10 years and step-up coupon rate of 10.00% pa, 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.
Read the release on Moneycontrol.com.
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