The Hindu Business Line : First tranche of oil bonds worth Rs 5,000 cr issued

The Government on Monday issued the first tranche of oil bonds worth Rs 5,000 crore to the state-owned oil marketing companies as compensation for under-recoveries in their sale of domestic LPG and kerosene (PDS) during the current financial year. The bonds (GOI Special Bond, 2021) carry a coupon rate of 8.13 per cent and have a 15-year tenure.

According to an official communiqué, the investment in the bonds will not be considered as an eligible investment by bank and insurance companies for their statutory requirements, but will be treated as eligible investment by a provident fund, gratuity fund and superannuation fund. The first tranche of the special bonds is being issued at par to Indian Oil Corporation Ltd, including IBP for Rs 2,838 crore, Bharat Petroleum Corporation Ltd for Rs 1,135 crore and Hindustan Petroleum Corporation Ltd for Rs 1,027 crore.

Eligibility

The special 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 Reserve Bank of India, the statement said.

The Government had as part of the first batch of supplementary demands for grants for 2006-07 obtained Parliamentary approval for bonds worth Rs 14,150 crore to be issued to state-run oil companies. The Rs 14,150-crore bonds would cover revenue loss suffered by oil companies on oil product subsidies in the first half of the current financial year that began in April.

The Government intended to issue bonds worth Rs 28,300 crore to provide financial support to the oil marketing companies.

8.15% FCI special bonds

The Government on Monday announced the issue of 8.15 per cent FCI Special Bonds, 2022, for Rs 5,000 crore (nominal). The first tranche of the Special Bonds are being issued to Food Corporation of India (FCI) in respect of foodgrains supplied by it to the Ministry of Rural Development. The Special Bonds will be issued at par, the statement said.

The investment in the Special Bonds will not be reckoned as an eligible investment by banks and insurance companies for their statutory requirements. However, such investment by the provident funds, gratuity funds, superannuation funds, and so on, in the Special Bonds will be treated as an eligible investment, the statement said.

More Stories on : Govt Bonds | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee gains on strong FII inflows

JM Financial Q2 net up

New IRDA norms for non-life covers

Mammootty is South Indian Bank brand ambassador

Union Bank to sell gold coins

BNP Paribas to hike capital base

IIFC, 3 public sector banks to co-fund infrastructure projects

Bank of Rajasthan hikes deposit rates

First tranche of oil bonds worth Rs 5,000 cr issued

Govt issues bonds to FCI

Bond prices fall by about 18 paise

SBI loan `mahotsav' begins at Vizag

Call rates high on tight liquidity

IDBI, Mitcon in pact for carbon credit services

SBI Caps MD