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India Set To Sell Retail Inflation-indexed Bonds Via IDBI Bank

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IDBI Bank Ltd is set to sell previously issued inflation-indexed government bonds to retail investors, a senior executive at the lender said on 12 July' 2013.
 
The government has already raised Rs20 billion from inflation-indexed bonds (ILBs) via two auctions conducted by the Reserve Bank of India in early and late June, and has been keen to make sure these so-called linkers can be sold on to retail investors.
 
India launched ILBs earlier this year to provide investors with an alternative to gold as a hedge against inflation.
 
Retail investors will be allowed to buy up to Rs2.5 million of Indian government inflation-linked bonds, with a minimum face value at Rs10,000 and additional increments of Rs10,000, said Melwyn Rego, executive director and head of IDBI's international banking business.
 
The price of the bond sale will be based on wholesale price inflation, he said.

(Reuters)


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