India to Auction Rs 32,000 Crore in Long-term Government Bonds

The Government of India has slated an auction for Rs 32,000 crore of long-term securities, to be managed by the Reserve Bank of India (RBI). This announcement, targeting August 1, 2025, is part of a strategy to navigate market borrowings by re-issuing government bonds.

According to the RBI, the re-issuance involves two government securities—one with a 6.68 percent yield maturing in 2040, and the other with a 6.90 percent yield maturing in 2065. Both securities will each have a notified amount of Rs 16,000 crore. The auction, set for a settlement on August 4, 2025, includes a provision for accepting additional subscriptions of Rs 2,000 crore each, potentially increasing the total to Rs 36,000 crore.

The auction will be conducted at the RBI's Mumbai office, adhering to specific and general central bank guidelines, and utilizing the multiple price method. Competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while non-competitive bids will be accepted from 10:30 a.m. to 11:00 a.m. via the RBI's e-Kuber platform, with results announced on the same day. A 5 percent reserve for non-competitive bidding encourages retail and institutional investor participation through the RBI Retail Direct platform.

Bidders may submit multiple bids, ensuring that combined bids do not surpass the notified amount. Securities will be issued in a minimum denomination of Rs 10,000. The RBI holds the authority to accept or decline any bids. Successful applicants will receive securities credited to their SGL or CSGL accounts.

The bonds qualify for repos and are available to non-residents under the Fully Accessible Route, offering semi-annual interest payments.

(With inputs from agencies.)