ICICI Bank 2003 Annual Report Download - page 145

F81
Continued
notes to the consolidated financial statements
Foreign currency debt
A listing of major category of foreign currency debt is set out below:
(Rs. in millions)
As of March 31,
2002 2003
Category Weighted Weighted
average Average average Average
interest Residual interest Residual
Amount rate Range maturity Amount rate Range maturity
Borrowings from international
development agencies
(1) (2) (3)
25,224 3.0% 0-6.8% 13.6 years 25,417 4.14% 0-8.5% 9.50 years
Other borrowings from
international markets 47,670 3.8% 2-9.1% 2.1 years 24,762 3.37% 0-9.15% 2.52 years
Total 72,894 3.5% 6.08 years 50,179 3.69% 6.05 years
(1) These borrowings have been raised under specific lines of credit from international development agencies. The borrowings have lender-imposed
restrictions that limit the use of the funds for specified purposes, which include lending to specified sectors.
(2) As of March 31, 2003, under these lines of credit, the Company has an unutilized option to borrow Rs.6,265million (2002:Rs.5,349million)
as per an agreed schedule over a period of 5 years at various interest rates.
(3) Exchange rate fluctuations on certain borrowings are guaranteed by the GOI.
Redeemable preferred stock
The Company issued preferred stock with a face value of Rs. 3,500million during the year ended March31, 1998
under the scheme of business combination with ITC Classic Finance Limited. This preferred stock bears a dividend
yield of 0.001% and is redeemable at face value after 20years. The preferred stock was initially recorded at its
fair value of Rs.466million. Subsequently, interest is being imputed for each reporting period. The imputed
interest rate of 10.6% was determined based on the then prevailing interest rate for securities of similar maturity.
The carrying amount of this redeemable preferred stock as of March 31, 2003 is Rs.853million (2002:
Rs. 772million).
Banks in India are not allowed to issue preferred stock. However, the Company has been currently exempted from
the restriction, which prohibits issue of preference shares by banks.
21. Other liabilities
Interest accrued
Other liabilities as of March 31, 2003, include Rs. 16,276 million (2002: Rs. 21,435million) of interest accrued but
not due on interest bearing liabilities.
Borrowings from Kreditanstalt fur Wiederaufbau
The Company has been borrowings from Kreditanstalt fur Wiederaufbau (KfW), an international development agency,
under specific lines of credit. The terms of the borrowings provide for limitations on usage, whereby funds can be
used only for specified purposes. The borrowings are guaranteed by the GOI.
With respect to certain borrowings, the terms of the borrowing agreement provide that a portion of the interest
payable on the borrowing shall be paid to the GOI instead of the lender. KfW and the GOI have entered into an
agreement whereby the interest paid to the GOI is repaid to the Company either in the form of a grant or a loan.
While the loan is repayable as per a specified schedule, the grants do not have a repayment schedule. The interest
amounts received from the GOI bear limitations on usage and are required to be advanced as loans/contributions
for specified purposes. Similarly, with respect to certain other borrowings from KfW, the terms of the borrowing
agreement provide that a portion of the interest payable on the borrowings shall be retained by the Company and
used to be advanced as loans/contributions for specified purposes.