Govt issues bonds worth Rs 10,000 cr to oil PSUs

The government on Monday issued bonds worth Rs 10,000 crore (Rs 100 billion) to oil marketing PSUs to compensate them for selling some petroleum products at below the cost price.

While Indian Oil Corporation will get the highest Rs 5,817.27 crore (Rs 58.17 billion) of special bonds, Bharat Petroleum Corporation Ltd will receive Rs 2,144.32-crore (Rs 21.44 billion) bonds and Hindustan Petroleum Corporation Ltd will be issued bonds worth Rs 2,038.41 crore (Rs 20.38 billion).

The bonds will carry an 8 per cent coupon rate and will mature in 2026, the government said in a statement.

The investment in these bonds will not be counted as statutory investment which banks have to make in governmentand other securities.