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Auction for Sale (Re-issue) of Government Stock (GS)

Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division

New Delhi, dated January 28, 2019

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)

7.00% GS 2021

Jan 21, 2019

02-00-00

Jan 21, 2021

Price

Multiple

2,000

8.24% GS 2027

Feb 15, 2007

20-00-00

Feb 15, 2027

Price

Multiple

2,000

GOI FRB 2031

May 07, 2018

13-07-00

Dec 07, 2031

Price

Multiple

3,000

7.40% GS 2035

Sep 09, 2005

30-00-00

Sep 09, 2035

Price

Multiple

2,000

8.17% GS 2044

Dec 01, 2014

30-00-00

Dec 01, 2044

Price

Multiple

3,000

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 
February 01, 2019. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 01, 2019. The non-competitive bids should be submitted between 11.30 a.m. and 12.00 noon and the competitive bids should be submitted between 11.30 a.m. and 12.30 pm.

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 
February 01, 2019. The payment by successful bidders will be on February 04, 2019 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)

7.00% GS 2021

7.00

New Stock

Feb 03, 2019

July 21 and Jan 21

8.24% GS 2027

8.24

Aug 15, 2018

Feb 03, 2019

Feb 15 and Aug 15

GOI FRB 2031

Variable*

Dec 07, 2018

Feb 03, 2019

Jun 07 and Dec 07

7.40% GS 2035

7.40

Sep 09, 2018

Feb 03, 2019

Mar 09 and Sep 09

8.17% GS 2044

8.17

Dec 01, 2018

Feb 03, 2019

June 01 and Dec 01

* 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 Dec 7, 2018 to Jun 6, 2019 is 7.05% per annum. Accordingly, the rate of interest on FRB 2031 for this period shall be 8.05% 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

 

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