Government
of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New
Delhi, dated September 17, 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 ? Crore)
|
6.65% GS 2020
|
Apr 09, 2018
|
02-00-00
|
Apr 09, 2020
|
Price
|
Multiple
|
2000
|
7.59% GS 2026
|
Jan 11, 2016
|
10-00-00
|
Jan 11, 2026
|
Price
|
Multiple
|
2000
|
GoI FRB, 2031
|
May 07, 2018
|
13-07-00
|
Dec 07, 2031
|
Price
|
Multiple
|
4000
|
7.50% GS 2034
|
Aug 10, 2004
|
30-00-00
|
Aug 10, 2034
|
Price
|
Multiple
|
2000
|
7.06% GS 2046
|
Oct 10, 2016
|
30-00-00
|
Oct 10, 2046
|
Price
|
Multiple
|
2000
|
Subject to the limit of ?12000
Cr, being total notified amount, GoI will have the option to retain
additional subscription up to ?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 September 21, 2018.
Bids for the auction should be submitted in electronic format on the
Reserve Bank of India Core Banking Solution (E-Kuber) system on September 21, 2018.
The non-competitive bids should be submitted between 11.00 a.m. and 12.00 noon and the competitive bids should be submitted
between 11.00 a.m. and 12.30
p.m.
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 September 21, 2018. The payment by successful bidders will be on September 24, 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
|
Sep 23, 2018
|
Oct 09 and Apr 09
|
7.59% GS 2026
|
7.59
|
Jul 11, 2018
|
Sep 23, 2018
|
Jan 11 and July 11
|
GoI FRB 2031
|
Variable*
|
Jun 07, 2018
|
Sep 23, 2018
|
Dec 07 and Jun 07
|
7.50% GS 2034
|
7.50
|
Aug 10, 2018
|
Sep 23, 2018
|
Feb 10 and Aug 10
|
7.06% GS 2046
|
7.06
|
Apr 10, 2018
|
Sep 23, 2018
|
Oct 10 and Apr 10
|
* 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 plus a fixed spread, of 100 basis points as 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
coupon period Jun 7, 2018 to Dec 6, 2018 is 6.79% per annum. Accordingly,
the rate of interest on FRB 2031 for this period shall be 7.79% per annum.
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
|