RBI to kickstart sale of inflation-indexed bonds on June 4

The Reserve Bank of India will sell Rs 10-20 billion of inflation-indexed bonds on June 4, kickstarting monthly sales of a new type of debt the country is introducing this year.

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The principal will be indexed to the wholesale price index with a four-months lag, while the coupon will remain fixed, the central bank said.
India plans to kick off the sale in June with inflation-linked debt of 10-year maturities, and will sell Rs 10-20 billion each month for a total of Rs 120-150 billion by the fiscal year ending in March 2014.
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The RBI will aim to eventually sell these bonds to retail investors around October, after gathering experience about the coupon rates from the initial sales.