Centre Announces Rs 27,000 Crore Government Securities Auction

The Indian government has revealed plans to auction government securities amounting to Rs 27,000 crore, according to an announcement by the Reserve Bank of India (RBI). The auction will involve two separate issues: one for Rs 15,000 crore with a 6.75% interest rate for securities maturing in 2029, and another for Rs 12,000 crore at 7.09% maturing in 2054, as noted in a Finance Ministry notification.

The Centre has reserved the option to retain additional subscriptions up to Rs 2,000 crore against these offerings. The term 're-issue' signifies that the RBI is offering more of an already existing bond in the market. This strategy aligns with the government's routine borrowing initiatives.

The Reserve Bank of India will manage the auction process, requiring bids to be electronically submitted through its E Kuber system on June 20, 2025. Non-competitive bids are to be submitted between 10:30 a.m. and 11:00 a.m., while competitive bids are expected from 10:30 a.m. to 11:30 a.m.

Results will be published on the RBI's website (www.rbi.org.in) on the same day, with successful bidders scheduled to finalize payments by June 23, 2025, which marks the re-issue date. Interest will begin accruing on the nominal bond value starting from the original issue date or following the most recent coupon payment, with bi-annual interest disbursements. Bonds will be redeemed at par upon maturity.

In earlier developments, the RBI announced the re-issue of two Government of India dated securities collectively valued at Rs 32,000 crore. These included securities bearing interest rates of 6.92% and 6.90%, maturing on November 18, 2039, and April 15, 2065, respectively, each amounting to Rs 16,000 crore. (ANI)

(With inputs from agencies.)