The term-lending organisation has reduced the mimimum maturity period of its instrument from five years to three years for its forthcoming bond issue.

ICICI is launching the Rs 300-crore ``ICICI safety bonds-May 99',' which will open for subscription on May 14, 1999, and close on May 24. It has a right to retain oversubscription of up to Rs 300 crore.

The issue offers various options under four types of bonds--encash bond, tax-saving bond, regular income bond, and money multiplier bond (in the nature of a deep discount bond).

Under the regular income bond, an investor can invest for three years and earn regular income on a monthly (12.4 per cent), half yearly (12.4 per cent) or annual (12.5 per cent) basis. A five-year regular income bond carries an interest rate of Rs12.75 per cent payble annually.

In the money multiplier bond option I, an investor can make Rs 7,125 by investing Rs 5,000 for three yeras at a yield 12.5 per cent.

Under option II, Rs 5,000 becomes Rs 50,000 in 18 years and five months at a yield of 13.3 per cent.

Under option III, Rs 5,000 becomes Rs 100,000 in 23 yeras and 10 months at a yield of Rs 13.4 per cent.

In the encash bond, an investor earns 12.1 per cent per annum if the bond is held till maturity.

Through the tax-saving bond, an investor canm save long-term capital gains tax under Section 54EA of the Income-Tax Act, 1961, by investing the net-sale consideration (from sale of shares, house, or any other capital asset) for three years.