First tranche of bank recap bonds likely in December

The government, the RBI, and banks are in the final stages of discussion on bank recapitalisation bonds

The government may issue the first tranche of Rs 1.35 lakh crore worth of bank recapitalisation bonds in the first week of December. 

“The issue of bonds is likely to start in early December. They will carry a coupon of around 7 per cent and the first tranche may have tenure of 10 years. Different tranches could have different maturity periods,” said an official aware of the deliberations.

The Centre is in the final stages of discussions with banks and the Reserve Bank of India (RBI) regarding the issue of these bonds. The amount of the first tranche has not yet been