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The bond may carry a coupon rate varying between 9.5 and 10.5 per cent, and would be payable semi-annually. The bond tenure is said to be for two years.

KOLKATA, July 1

ORISSA Small Industries Corporation (OSIC), the nodal organisation set up by the Orissa Government for development of small industries in the State, has chalked out plans for a Rs 20-crore bond issue, essentially to swap it against the high cost loans of Rs 20 crore it now holds.

The OSIC board is expected to meet soon to finalise the mandate for appointment of a merchant banker for structuring the instrument. The bond tenure is said to be for two years.

According to highly placed State Government sources, the city-based Srei International Finance has already made a presentation to OSIC for taking up the job of structuring the instrument. It is learnt that the bond may carry a coupon rate varying between 9.5 and 10.5 per cent, and would be payable semi-annually.

As per information available with Business Line, CARE (Credit Analysis and Research Ltd) is likely to get the job of rating the instrument once fully structured.

Sources said the bond would be guaranteed by the State Government and repayment would be through a structured mechanism, sources said.

It is further learnt that UTI Bank was likely to be the trustee to the issue.

It is learnt that OSIC now holds loans which entail high rates varying between 13.75 per cent and 13.90 per cent.

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