Govt to sell inflation-indexed bonds to retail investors via IDBI bank

MUMBAI: IDBI Bank Ltd is set to sell previously issued inflation-indexed government bonds to retail investors, a senior executive at the lender said on Friday.

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The government has already raised Rs 2000 crore ($334.53 million) 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.

Govt 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 Rs 2.5 million of government inflation-linked bonds, with a minimum face value at Rs 10,000 and additional increments of Rs 10,000, said Melwyn Rego, executive director and head of IDBI’s international banking business.

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The price of the bond sale will be based on wholesale price inflation, he said.

Reuters