India cbank to kickstart sale of inflation-indexed bonds on June 4

MUMBAI Wed May 15, 2013 5:17am EDT

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MUMBAI May 15 (Reuters) - The Reserve Bank of India will sell 10-20 billion rupees of inflation-indexed bonds on June 4, kickstarting monthly sales of a new type of debt the country is introducing this year.

The principal will be indexed to the wholesale price index with a four-months lag, while the coupon will remain fixed, the central bank said.

India plans to kick off the sale in June with inflation-linked debt of 10-year maturities, and will sell 10-20 billion rupees each month for a total of 120-150 billion rupees by the fiscal year ending in March 2014.

The RBI will aim to eventually sell these bonds to retail investors around October, after gathering experience about the coupon rates from the initial sales. (Reporting by Suvashree Dey Choudhury, Swati Bhat and Neha Dasgupta)

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