Government
of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New
Delhi, dated May 28, 2018
NOTIFICATION
Auction
for Sale (Re-issue) of Government Stock (GS)
F.No.4(6)W&M/2018:
Government of India(GoI) hereby notifies sale (re-issue)
of the following Government Stocks:
Name
of the Security
|
Date
of Original Issue
|
Tenure
(yy-mm-dd)
|
Date
of Maturity
|
Base
|
Method
|
Notified
Amount
(in Rs Crore)
|
6.65% GS 2020
|
Apr 09, 2018
|
02-00-00
|
Apr 09, 2020
|
Price
|
Multiple
|
2,000
|
7.59% GS 2026
|
Jan. 11, 2016
|
10-00-00
|
Jan. 11, 2026
|
Price
|
Multiple
|
3,000
|
GoI FRB 2031
|
May 07, 2018
|
13-07-00
|
Dec 07, 2031
|
Price
|
Multiple
|
3,000
|
6.57% GS 2033
|
Dec 05, 2016
|
17-00-00
|
Dec 05, 2033
|
Price
|
Multiple
|
1,000
|
7.72% GS 2055
|
Oct. 26, 2015
|
40-00-00
|
Oct. 26, 2055
|
Price
|
Multiple
|
3,000
|
Subject to the limit of Rs 12000
Cr, being total notified amount, GoI will have the option to retain
additional subscription up to Rs 1000 Cr each against any one or more of
the above securities. The sale will be subject to the terms and conditions
spelt out in this notification (called ‘Specific Notification’). The Stock
will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai-
400 001 as per the terms and conditions specified in the General Notification F.No.4(2)–W&M/2018, dated March
27, 2018 issued by Government of India.
Allotment
to Non-competitive Bidders
2. The Government Stock up to 5% of the notified amount of the sale will be
allotted to eligible individuals and institutions as per the enclosed
Scheme for Non-competitive Bidding Facility in the Auctions of Government
Securities (Annex).
Place and
date of auction
3. The auction will be conducted by Reserve Bank of India, Mumbai Office,
Fort, Mumbai -400 001 on Jun
1, 2018. Bids for the auction should be
submitted in electronic format on the Reserve Bank of India Core Banking
Solution (E-Kuber) system on Jun
1, 2018. 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 12.00 noon.
When Issued
Trading
4. The Stock will be eligible for “When Issued” trading in accordance with
the guidelines issued by the Reserve Bank of India.
Date of
issue and payment for the stock
5. The result of the auction shall be displayed by the Reserve Bank of
India at its Fort, Mumbai Office on Jun
1, 2018. The payment by successful
bidders will be on Jun 4, 2018 i.e. the date of re-issue.
The payment for the stocks will include accrued interest on the nominal
value of the Stock allotted in the auction from the date of original issue
/ last coupon payment date to the date upto which accrued interest is due
as mentioned in the table in para 6.
Payment of
Interest and Re-payment of Stock
6. Interest will accrue on the nominal value of the Stock from the date
of original issue / last coupon
payment and will be paid half
yearly. The Stock will be repaid at par on date of maturity.
Name
of the Security
|
Coupon
rate
(%)
|
Date
of Last Coupon payment
|
Date
upto which accrued interest is due
|
Date
of Coupon payments
(month / date)
|
6.65% GS 2020
|
6.65
|
New Stock
|
Jun 3, 2018
|
Oct 09 and Apr 09
|
7.59% GS 2026
|
7.59
|
Jan 11, 2018
|
Jun 3, 2018
|
Jul 11 and Jan 11
|
GoI FRB 2031
|
Variable*
|
New Stock
|
Jun 3, 2018
|
Jun 07 and Dec 07
|
6.57% GS 2033
|
6.57
|
Dec 05, 2017
|
Jun 3, 2018
|
Jun 05 and Dec 05
|
7.72% GS 2055
|
7.72
|
Apr 26, 2018
|
Jun 3, 2018
|
Oct 26 and Apr 26
|
*GoI FRB 2031:
|
(i) The interest at a variable
rate will be paid every half-yearly.
(ii) The Floating Rate Bond will
carry the coupon, which will have a base rate, equivalent to Weighted
Average Yield (WAY) of last 3 auctions (from the rate fixing day) of 182
Day T-Bills (Please see Annex for illustration),
plus a fixed spread, to be decided by way of auction mechanism. The spread
will be fixed throughout the tenure of the bond. The implicit yields will
be computed by reckoning 365 days in a year.
(iii) In the event of Government
of India 182-day Treasury Bill auctions being discontinued during the
currency of the Bonds, the base rate of the coupon will be the average of
Yield to Maturity (YTM) rates prevailing for six month Government of India
Security/ies as on the last three non-reporting Fridays prior to the
commencement of the semi-annual coupon period. In case particular Friday/s
is/are holiday/s, the yield to maturity rates as on the previous working
day shall be taken.
(iv) The base rate for the first
coupon payment for period ending June 07, 2018 shall be 6.33 per cent. The
rate of interest payable half yearly on the Bonds during the subsequent
years shall be announced by the Reserve Bank of India before the
commencement of the relative semi-annual coupon period.
By
Order of the President of India
(Arvind
Shrivastava)
Joint Secretary to the
Government of India
Annex
Illustration:
Base Rate payable on Floating Rate Bonds 2031
Calculation of base rate for the
first coupon payment for period ending June 07, 2018
S.No.
|
182
DTB auction dated
|
Weighted
Average Price
|
Weighted
Average Yield (%)
|
1
|
April 25, 2018
|
96.91
|
6.3971
|
2
|
April 18, 2018
|
96.95
|
6.3038
|
3
|
April 11, 2018
|
96.96
|
6.2878
|
|
Total
|
|
18.9887
|
@ annualized for 365 day year
Base Rate = (18.9887 / 3) = 6.3296
Rounded off to two decimal places = 6.33 per cent per annum
|