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Mumbai, Dec. 23 The Government issued special oil bonds worth Rs 22,000 crore to three oil marketing companies, the Reserve Bank of India said in a press release on Tuesday.

The 6.35 per cent special bonds have a maturity date of 2024 and are being issued to the oil marketing companies as compensation towards estimated under-recoveries on account of sale of sensitive petroleum products during the current financial year, said the release.

The break-up of the bonds between the three oil marketing companies is as follows:

Indian Oil Corporation Ltd - Rs 11,975.51 crore, Hindustan Petroleum Corporation Ltd - Rs 4,693.73 crore and Bharat Petroleum Corporation Ltd - Rs 5,330.76 crore.

The RBI release said the investment in the special bonds by banks and insurance companies will not be reckoned as an eligible investment in Government securities for their statutory requirements.

However, such investment by insurance companies will be eligible to be reckoned as investment under “other Approved Securities” category as defined under Insurance Regulatory and Development Authority (Investment) Regulations, 2000.

Further, the investment by the provident funds, gratuity funds, superannuation funds, etc. in the special bonds will be treated as an eligible investment under the administrative order of the Finance Ministry.

The special bonds will be transferable and eligible for market ready forward transactions (Repo), the RBI said.

More Stories on : Govt Bonds | Petroleum

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