The rate of interest on the Floating Rate Bonds, 2015 (FRB, 2015) applicable for the year (July 2, 2013 to July 01, 2014) shall be 7.57 percent per annum.

It may be recalled that the rate of interest on the FRB, 2015 was set at a mark-up (as decided in the auction held on July 1, 2004) over and above the variable base rate. The variable base rate for payment of interest shall be the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices emerging in the three auctions of Government of India 364 day Treasury Bills immediately preceding the relative annual coupon reset date which worked out to be 7.38 per cent. The mark-up decided in the auction held on July 1, 2004 was (+) 0.19 (plus 0.19) percent. The coupon rate has been fixed at 7.57 per cent per annum accordingly.

Ajit Prasad

Assistant General Manager

Press Release: 2012-2013/2205

Floating rate bond coupon determination set by variable base rate plus auction mark-up, fixing the annual coupon rate. Rate of interest on Floating Rate Bonds 2015 for the annual coupon period is set by adding the auction-decided mark-up of plus 0.19 percent to the variable base rate, which is the average of implicit yields at cut-off prices from the three Government of India 364-day Treasury Bill auctions immediately preceding the coupon reset date, rounded to two decimal places.