Tuesday, September 19 2006 15:19 Hrs (IST) - World Time -

New Delhi: Six entities including State Bank of India and ICICI Bank have raised Rs 40.75 billion capital through bonds or perpetual debt in the last fortnight ended September 15.

With interest rates hardening, the cost of the funds to the companies worked out to be 9-10 per cent per annum.

Country's largest bank, SBI raised Rs 11 billion through Tier II bonds in two installments of Rs 6 billion and Rs 5 billion, according to PNB Gilts.

The bonds carry an interest rate of 8.96 per cent and 8.97 per cent respectively and have a call option that could be exercised at the end of 10th year.

ICICI Bank raised Rs 5 billion through perpetual debt issue at an interest rate of 9.98 per cent and 10.98 per cent semi-annually from 10th year onward if call option is not exercised.

Bangalore-based Canara Bank mobilised Rs 5.75 billion through 10-year bonds that carry an interest rate of 8.85 per cent per annum.

Housing finance major HDFC and premier export financier Exim Bank raised Rs 2 billion each through five-year papers that give an interest of 8.65 per cent and and 8.5 per cent respectively.

Besides these five from financial sector, Power Grid Corp ration raised Rs 15 billion through 15-year debt with an interest payout of 8.93 per cent per annum.