The Hindu Business Line : Oil bonds worth Rs 5,750 cr issued

The Government has issued oil bonds to three PSU oil marketing companies to compensate them for under-recoveries in the sale of domestic LPG and kerosene (sold through PDS)during the current fiscal, a release from Reserve Bank of India said here on Thursday.

The three special oil bonds worth Rs 5,750 crore, called the `Oil Marketing Companies Government of India Special Bonds' include: a) 7.07 per cent-three year-2009 bond for Rs 2,000 crore, b) 7.44 per cent-six year-2012 bond for Rs 2,000 crore and c) 7.59 per cent-nine year-2015 bond for Rs 1,750 crore.

The bonds were issued at par to Indian Oil Corporation for Rs 3,542.95 crore, Bharat Petroleum Corporation for Rs 1,062.31 crore and Hindustan Petroleum Corporation for Rs 1,144.74 crore.

Not eligible for SLR

Investment in these special bonds will not be treated as an eligible investment for the purpose of statutory liquidity ratio.

The bonds will be transferable and eligible for market ready forward transactions (repo). The bonds, however, will not be an eligible underlying security for ready forward transactions (repo/ reverse repo) with the RBI, the release added.

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