RBI notifies private placement of UDAY bonds

By: | Updated: March 29, 2016 2:10 AM

The central bank indicated that interested participants should approach the RBI by March 30

The Reserve Bank of India (RBI) on Monday has asked market participants interested in subscribing to the special securities under Ujwal Discom Assurance Yojna (UDAY) scheme via the private placement route to approach its internal debt management department.

The central bank indicated that interested participants should approach the RBI by March 30. “The special securities under UDAY are being issued by state governments of Bihar, Haryana, Jammu & Kashmir, Jharkhand, Punjab and Rajasthan,” it added in the press release.

The tenure and pricing of the bonds will be in accordance with the UDAY scheme notification, the release added. The UDAY scheme envisages 75% of the debt of discoms, as on September 30, being taken over by state governments and converted into bonds with a maturity of between 10-15 years.

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