Rs 800-bn bank recapitalisation bonds to have 10-15-year tenure: Jaitley

Coupon rate fixed at 7.35-7.68%

The Central government on Tuesday gave the details of its Rs 800 billion recapitalisation bonds for banks through six maturities, and they will not disturb the market dynamics of the fixed-income paper,  experts said.

Sentiment in the market may improve because the coupons for the bonds were a bit below the closing rates for papers of similar maturities, according to analysts.

The Rs 800-billion recapitalisation bonds would have a tenure of 10-15 years and would carry a coupon rate in the range of 7.35-7.68 per cent, the finance ministry said in a notification.

Termed “non-transferable special government of India security”, the bond will