The Reserve Bank of India (RBI) has announced that the interest rate on the Government of India Floating Rate Bond 2033 (GOI FRB 2033) for the period from March 22, 2024, to September 21, 2024, will be 8.34% per annum. This bond has a floating interest rate mechanism, where the coupon rate is determined based on the Weighted Average Yield (WAY) of the last three auctions of 182-Day Treasury Bills, plus a fixed spread of 1.22%.
Key Highlights
Other Details
- Interest Rate: 8.34% per annum.
- Applicable Period: March 22, 2024 – September 21, 2024.
- Floating Rate Mechanism: The interest rate is linked to the average WAY of the last three auctions of 182-Day Treasury Bills from the rate-fixing date.
- Fixed Spread: An additional 1.22% is added to the WAY to determine the final interest rate.
- Revised Semi-Annually: The rate is reset every six months based on the latest WAY of 182-Day T-Bills.
Issued by
- The Government of India, with RBI as the issuing authority.
Investor Appeal
- Ideal for investors seeking periodic interest adjustments based on prevailing market conditions.
Summary/Static | Details |
Why in the news? | RBI Announces 8.34% Rate for GOI Floating Rate Bond 2033 |
Bond Name | GOI Floating Rate Bond 2033 |
Interest Rate | 8.34% per annum |
Applicable Period | March 22, 2024 – Sep 21, 2024 |
Rate Calculation | Basis Average WAY of last 3 auctions of 182-Day T-Bills + 1.22% |
Fixed Spread | 1.22% |
Reset Frequency | Every six months |
Issuer | Government of India |