Haryana to Privately Place Special Securities for ₹ 775 crore under UDAY Scheme On July 01, 2016

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Haryana Government proposes to issue Special Securities of a notified amount of ₹ 775 crore, under the Ujjwal Discom Assurance Yojna Scheme (UDAY). Eligible market participants interested in subscribing to these Special Securities are advised to send their bids as per the format given below please click here to send email between 10.30 a.m. to 12.00 noon on July 01, 2016 (Friday).

Investor name Spread offered over 10 year FIMMDA yield Amount to be subscribed

Allotment of securities and settlement will take place on July 4, 2016 (Monday).  The terms and conditions of the issuance are as under:

  1. The Special Securities will have a face value of ₹ 100.

  2. Securities will be issued in equal strips with a maturity at the end of 6th, 7th, 8th, 9th and 10th year. An investor will be required to purchase entire structure and the bid amount will be uniformly distributed across all tenors.

  3. Minimum size of bid will be ₹ 100 crore.

  4. Base rate will be the yield on FIMMDA 10 year Government of India G-sec yield as at close of July 1, 2016.

  5. The uniform spread (with a cap of 75 bps over 10 year GoI FIMMDA yield) offered by the bidder will be added to the base rate to arrive at the issuance coupon to be paid on semiannual basis.

  6. Successful bidders will be determined after taking into account the competitive spread and the time stamp of the mail.

  7. The Reserve Bank of India will have the discretion to accept or reject any/all bids at its sole discretion.

It may be recalled that the Ministry of Power, Government of India on November 20, 2015 issued an Office Memorandum (No 06/02/2015-NEF/FRP) on “UDAY (Ujjwal Discom Assurance Yojna) Scheme for Operational and Financial Turnaround of Power Distribution Companies (DISCOMs)”.

Alpana Killawala
Principal Adviser

Press Release : 2015-2016/3043