Government of India have announced sale (re-issue) of Floating Rate Bonds, 2020 (FRB) for a notified amount of Rs 3,000 crore (nominal) through price based auction using uniform price method. The coupon rate of the FRB for payment of interest for the first half year ending June 20, 2010 will be 3.79 per cent. For the subsequent periods, the interest will be paid at a variable rate on a semi-annual basis. The variable interest rate for payment of interest will be the average of the implicit yields at cut-off prices of last three auctions of Government of India 182 day Treasury Bills. The reset of variable interest rates will be made semi-annually and will be announced by the Reserve Bank of India on or before the commencement of the respective coupon periods.
Government of India have also announced the sale (re-issue) of "7.32 per cent Government Stock 2014" for a notified amount of Rs. 2,000 crore (nominal) and "8.28 per cent Government Stock 2032" for a notified amount of Rs. 2,000 crore (nominal) through price based auctions using uniform price method.
The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on January 22, 2010 (Friday). The result of the auctions will be announced on January 22, 2010 and payment by successful bidders will be on January 25, 2010 (Monday).
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.
Both competitive and non-competitive bids for the auctions should be submitted in electronic format on the Negotiated Dealing System (NDS) on January 22, 2010. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.30 p.m.
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.
As per the indicative calendar, the Government of India was to raise funds amounting to Rs. 7,000 crore during January 15-22, 2010 through issuance of (a) 10-14 year security for Rs.4,000-5,000 crore and (b) 20-years and above security for Rs.2,000-3,000 crore. In a deviation from the calendar, the Government of India,in consultation with the Reserve Bank of India, have decided to auction securities through issuance of (a) 5-9 year security for Rs.2,000 crore, (b) 10-14 year security for Rs.3,000 crore and (c) 20-year and above security for Rs.2,000 crore.
Government of India
Ministry of Finance
Department of Economic Affairs
North Block, New Delhi - 110001
Dated, January 15, 2010
