The government has exercised the call option for the redemption of non-interest bearing special security to the tune of Rs 255 crore given to IDBI Bank in 2004.
With this redemption the total outstanding amount will come down to Rs 2,378.73 crore, a gazette notification dated March 27, 2023, said.
These 20-year tenure special securities were issued at par in 2004.
“The date of premature redemption of the Special Security by the Government of India shall be March 31, 2023,” it said.
Following a loan agreement entered into by the Government of India with the trustees of the Stressed Asset Stabilisation Fund (SASF), the Special Security worth Rs 9000 crore was issued to SASF. Only the SASF was eligible to subscribe to the special security.
The tenure of these papers commenced on September 29, 2004. The Special Security to be repaid at par on September 29, 2024 at Public Debt Offices of the Reserve Bank of India at which they are registered at the time of repayment. PTI DP MR
