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RBI fixes rate on floating bond 2031 for next 6 months

FRB 2031 was originally issued on May 07, 2018 with expiration date set at Dec 07, 2031.

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Dec 06, 2019, 05.41 PM IST
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RBI has set the interest on the FRB 2031 applicable for the half year December 7, 2019 to June 6, 2020 at 6.10 per cent per annum.

The Reserve Bank of India (RBI) fixed the interest rate for floating rate bond (FRB), 2031 for the next six months on Friday.

The central bank has set the interest on the FRB 2031 applicable for the half year December 7, 2019 to June 6, 2020 at 6.10 per cent per annum.

“It may be recalled that FRB, 2031 will carry a coupon, which will have a base rate equivalent to the Weighted Average Yield (WAY) of last three auctions (from the rate fixing day that is December 7, 2019) of 182 Day T-bills, plus a fixed spread (100 bps),” RBI said.

The Weighted average yields will be computed by reckoning 365 days in a year. The coupon rate has been fixed accordingly.

FRB 2031 was originally issued on May 07, 2018 with expiration date set at Dec 07, 2031.

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