Auction for Sale (Issue/re-issue) of Government Stock (GS)

Government of India Ministry of Finance Department of Economic Affairs Budget Division New Delhi, dated April 1, 2019 NOTIFICATION Auction for Sale (Issue/re-issue) of Government Stock (GS) F.No.4(6)W&M/2018: Government of India(GoI) hereby notifies sale (issue/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) 7.00% GS 2021 Jan 21, 2019 02-00-00 Jan 21, 2021 Price Multiple 3,000 New GS 2026 Apr 8, 2019 7-00-00 Apr 8, 2026 Yield Multiple 3,000 GOI FRB 2031 May 07, 2018 13-07-00 Dec 07, 2031 Price Multiple 5,000 New GS 2039 Apr 8, 2019 20-05-07 Sep 15, 2039 Yield Multiple 2,000 7.72% GS 2055 Oct. 26, 2015 40-00-00 Oct. 26, 2055 Price Multiple 4,000 Subject to the limit of ₹17000 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 April 5, 2019. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 5, 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 April 5, 2019. The payment by successful bidders will be on April 8, 2019 i.e. the date of issue/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 Apr 7, 2019 Jul 21 and Jan 21 New GS 2026 Yield Based # New Stock New Stock Oct 8 and Apr 8 GOI FRB 2031 Variable* Dec 7, 2018 Apr 7, 2019 Jun 7 and Dec 7 New GS 2039 Yield Based # New Stock New Stock Sep 15 and Mar 15 7.72% GS 2055 7.72 Oct 26, 2018 Apr 7, 2019 Apr 26 and Oct 26 # The coupon rate for the securities will be set at the cut-off yield to maturity rate decided in the auction. The interest will be payable half-yearly * 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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