OREANDA-NEWS. July 1, 2011. The rate of interest on the Floating Rate Bonds, 2015 (FRB, 2015) applicable for the year (July 2, 2011 to July 1, 2012) shall be 8.49 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 8.30 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 8.49 per cent per annum accordingly.