New Issue: India sells Rs. 2.46 billion initial tranche of sovereign gold bonds

By Marisa Wong

Morgantown, W.Va., Dec. 1 – India issued its first tranche of sovereign gold bonds, totaling Rs. 2.46 billion, on Monday, according to a news release.

The subscription amount was 915,953 grams in units of gold.

The bonds were open for subscription from Nov. 5 to Nov. 20 and were sold through specified commercial banks and designated post offices.

The top 10 receiving offices in terms of subscription amount were HDFC Bank Ltd., Icici Bank Ltd., YES Bank Ltd., Allahabad Bank, Bank of India, Andhra Bank, Karur Vysya Bank Ltd., DCB Bank Ltd., State Bank of India and Federal Bank Ltd.

Because of the encouraging investor response to the first tranche, the government plans to announce further tranches of the sovereign gold bonds, the release said.

The Reserve Bank of India, in consultation with the Indian government, had launched the sovereign gold bonds in an effort to reduce demand for physical gold by providing an alternative investment instrument linked to gold.

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