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India offers second tranche of sovereign Gold bonds from Jan 18 to 22

iconJan 19, 2016 09:20
Source:SMM
India will offer the second tranche of sovereign gold bonds from January 18 to January 22, the Reserve Bank of India said Friday.

INDIA January 18 2016 10:38 PM

MUMBAI (Scrap Register): India will offer the second tranche of sovereign gold bonds from January 18 to January 22, the Reserve Bank of India said Friday. 

“The issue price of the Sovereign Gold Bond for this tranche has been fixed at Rs. 2,600/- (Rupees Two Thousand Six Hundred only) per gram of gold,” the central bank added. 

“The rate has been fixed on the basis of simple average of closing price for gold of 999 purity of the previous week (January 11-15, 2016) published by the India Bullion and Jewellers Association Ltd (IBJA).” 

In a research note Monday, analysts at Barclays said the tenor of the bond will be eight years with a five-year exit option. The interest rate, the analysts continued, is fixed at 2.75% of the initial investment value. 

“The first tranche of the sovereign gold bond received subscriptions of 915.953kg of gold, valued at 2.46bn rupees ($36.5mn). This is a limited amount compared with annual jewellery consumption of up to 1000 tonnes in India,” Barclays added.


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