RBI sets underwriting commitment for primary dealers at bond auctions
09 Jan 2008
Mumbai: The Reserve Bank of India (RBI) has fixed Rs158 crore minimum underwriting commitment for each primary dealer at auction of the 7.99 per cent bonds, maturing in 2017.
The RBI also fixed the additional competitive underwriting, for which primary dealers have to bid collectively, at Rs158 crore for the 2017 bonds.
The government plans to raise Rs6,000 crore through the bond issue.
For the 8.33 per cent 2036 bonds, the RBI fixed the minimum underwriting commitment for primary dealers at Rs106 crore each.
The additional competitive underwriting has been fixed at Rs106 crore for the 2036 bond, the RBI said. The government plans to raise Rs4,000 crore through this bond.
The government plans to raise a total of Rs10,000 crore through sale (re-issue) of `7.99 per cent 2017 and `8.33 per cent 2036 stock through auctions, to be held on January 11, 2008.
The underwriting auctions will be conducted using multiple price-based auction method. Primary dealers may submit their bids for ACU auctions electronically through NDS-PMO module between 10.30 a.m. and 12.30 p.m. on January 10, 2008.
The underwriting commission will be credited to the current account of the respective PDs at the RBI, Fort, Mumbai on the date of issue of security.
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