On offer from ICICI this time around is the usual fare of a regular income bond, a mellowed tax-saving bond, a shorter-maturity encash bond and a low-yielding money mutliplier bond. A distinctive feature of new Safety Bonds issue is its shorter tenure -- three years instead of five years -- possibly to match the short-term funding requirements of ICICI.

After the resounding success of the March issue, which mopped up over Rs 600 crore against a target of Rs 300 crore on account of bank rate cut, ICICI is once again entering the retail debt market.

However, in tune with the lower interest rates, ICICI has slashed the coupon rate across-the-board. The worst hit are the regular return bonds wherethe yields have been reduced by over 100 basis points.

The annual interest payment option, which had attracted considerable interest in March with an attractive coupon of 14 per cent, is now offering an yield of only 12.5 per cent (down from 14 per cent in March).

In the monthly interest payment option, a one per cent cut has been effected in the coupon rate. The yield now stands at a reduced 12.4 per cent compared with 13.5 per cent in March. With UTI's monthly income plan (which is open for subscription) offering a tax-free return of 11.3 per cent per annum, it is unlikely that ICICI would be able to attract many investors. Undoubtedly, the best bet in regular income bond is the five-year option which offers an yield of 12.8 per cent.

Tax-saving bonds, which raked in the maximum moolah for ICICI in the March issue (see table), fails to impress this time around. The much-awaited Section 88 benefit is missing, as is the new innovations under this bond introduced last time.

ICICI has restricted theinstrument to two option, both of which offer capital gains benefit under Section 54EA of the IT Act. According to sources, this is basically to lure investors who have booked capital gains thanks to the bull-run in the equity market. The only consolation for investors opting for the tax-saving bonds is that the coupon has been cut bu only 25 basis points.

The money-multiplier bonds have become even more unattractive with a longer maturity. It will now take 18 years and 5 months for your Rs 5,000 to become Rs 50,000 compared with only 18 years earlier.

The encash bond, which is similar to a bank fixed deposit, has been left untouched. The only difference is the tenure. The issue, which is ICICI's first public offering in the current financial year, is slated to open for subscription on May 14and will remain open till May 24. A repeat of the March issue is an impossibility and, hence, ICICI will have to aggressively market these bonds to see the issue through.