Government of India have announced sale of Floating Rate Bonds (FRB) of 11 year tenure, for a notified amount of Rs 2,000 crore (nominal) through price based auction using uniform price format. The bonds will carry a variable coupon rate to be computed by taking the average of the implicit yields at cut-off prices of last three auctions of Government of India 182 day Treasury Bills. The reset and payment of variable coupons will be made on a semi-annual basis. The coupon rate for payment of interest for the first half year ending June 20, 2010 will be 3.79 per cent. The variable coupon rate for the subsequent semi-annual periods will be announced by the Reserve Bank of India on or before the commencement of the respective coupon period.
Government of India have also announced the sale (re-issue) of "7.02 per cent Government Stock 2016" for a notified amount of Rs. 4,000 crore (nominal) and "8.28 per cent Government Stock 2032" for a notified amount of Rs. 3,000 crore (nominal) through price based auctions using uniform price method.
Up to 5% of the notified amount of the sale of all the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
The result of the auctions will be announced on December 18, 2009 and payment by successful bidders will be on December 21, 2009 (Monday).
The Stocks will be eligible for "When Issued" trading in accordance with the guidelines on 'When Issued transactions in Central Government Securities' issued by the Reserve Bank of India vide circular No. RBI /2006-07/178 dated November 16, 2006 as amended from time to time.
Government of India
Ministry of Finance
Department of Economic Affairs
North Block, New Delhi - 110001
Dated, December 11, 2009
