Government of India hereby notifies sale reissue of the following Government Securities

The Department of Economic Affairs vide Notification No. F. No. 4(3)-B(W&M)/2022. dated 18th April, 2022 notifies sale reissue of the following Government Securities.

Text of the Notification Given Below:

F. No. 4(3)-B(W&M)/2022.—Government of India hereby notifies sale (re-issue) of the following Government Securities:

GoI will have the option to retain additional subscription up to `2,000 crore against each security mentioned above. The sale will be subject to the terms and conditions spelt out in this notification (called ‗Specific Notification‘). The Securities 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 Securities 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 April 22, 2022. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 22, 2022. The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m.

When Issued Trading

4. The Securities 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 Securities

5. The result of the auction shall be displayed by the Reserve Bank of India on its website (www.rbi.org.in) on April 22, 2022. The payment by successful bidders will be on April 25, 2022 i.e. the date of re-issue. The payment for the Securities will include accrued interest on the nominal value of the Securities allotted in the auction from the date of original issue/last coupon payment date to the date up to which accrued interest is due as mentioned in the table in para 6.

Payment of Interest and Re-payment of Securities

6. Interest will accrue on the nominal value of the Securities from the date of original issue/last coupon payment and will be paid half yearly. The Securities will be repaid at par on date of maturity.

(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 the average of the Weighted Average Yield (WAY) of last 3 auctions (from the rate fixing day) of 182 Day T-Bills, plus a fixed spread of 98 basis points. 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 semiannual 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 the period from October 30, 2021 to April 29, 2022 shall be 3.70 per cent per annum. Accordingly, the rate of interest on FRB 2034 for this period shall be 4.68 percent 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.

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