Mumbai, Nov 07: Reserve Bank of India is to conduct an auction of floating rate bonds, 2012, for an aggregate amount of Rs 5,000 crore today. The auction would be conducted using the uniform price format, RBI said in a release here today.

The floating rate bonds are being issued by the Government of India on auction basis for the sixth time, it added.


RBI said that upto five per cent of the notified amount of the sale of bonds would be allotted to eligible individuals and institutions.

The bonds would carry an interest rate, which was calculated by adding a "spread" to a "variable base rate". The "spread" would be decided in the auction and remain unchanged during the currency of bonds, it added.

The base rate for calculation of interest for the first coupon period commencing from November 10 to November 9, 2004 would be 4.53 per cent.
RBI said that the there would be no floor or cap on interest rate on floating rate bonds.
Bureau Report