Mumbai, October 28, 2002: DSPML has developed the first hybrid interest rate debt instrument for RABO India Finance Pvt. Ltd (RABO India) with both parts of the structure being floaters based on different parameters. RABO India, through this innovative structure, raised Rs.60 Crores through 364-days debenture issue carrying two distinct coupon rates for the two semi-annual interest periods. The debenture issue was rated "P1+" by CRISIL. RABO India Finance Pvt. Ltd. is the local arm of RABOBANK, the Netherlands' third-biggest bank.

The unique hybrid interest rate floater, has an inverse floater for the first semi-annual period and a floater over the benchmark, MIBOR, for the second interest period. For the first interest period of 182 days, the coupon rate applicable is 12.35% minus NSE Mibor for that period. The coupon for the second interest Period, is a floating rate of interest at 90 basis points spread above the NSE Mibor.

DSP Merrill Lynch were the Sole Arranger to the debenture issue. The deepening of the hedge markets for short term interest rates, offered the Company a competitive hedge against volatility in call rates and enabled RABO India to fine tune the pricing for the 1-year debenture, to the lowest possible. Jayesh Mehta, Senior Vice President, DSP Merrill Lynch adds that "the product structure addresses the need of the hour for Institutional Investors who would like to ride over the uncertain conditions in the market a few months hence. Inspite of the fact that the structure is CREDIT POLICY Neutral, it still permits the investors to benefit from the anticipated movements in short term interest rates." Investors skeptical about the prevalence of easy liquidity conditions over a sustained period, favored the hybrid instrument to take advantage of any reversal in the call rates movements.

DSP Merrill Lynch Limited is one of India's leading investment bank and securities firm and is an affiliate of Merrill Lynch & Co., one of the world's leading capital raising, financial management and advisory companies. Among the top institutional brokers in India, DSP Merrill Lynch has been rated highly for its investment banking, broking, and research capabilities by leading international publications such as Institutional Investor, Asiamoney and Financeasia. For more information, please visit www.dspml.com.