Government to Reissue Securities Worth ₹27,000 Crore in Two Tranches

Details of the Government Securities Auction

The Indian government has announced a reissue of government securities amounting to ₹27,000 crore, as reported by the Reserve Bank of India (RBI). This auction will be divided into two parts: ₹15,000 crore at a 6.75% interest rate for securities maturing in 2029, and ₹12,000 crore at a 7.09% interest rate for securities maturing in 2054, according to a notification from the Finance Ministry.

Moreover, the government has the option to retain subscriptions of up to ₹2,000 crore for these securities. A 'reissue' indicates that the RBI is offering additional amounts of bonds that are already available in the market. This action is part of the government's ongoing borrowing strategy.

The auction will be managed by the Reserve Bank of India, with bids required to be submitted electronically via the RBI's E Kuber system by June 20, 2025.

Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m., while competitive bids should be submitted from 10:30 a.m. to 11:30 a.m.

Auction Results and Payment Details

The results of the auction will be published on the RBI's official website on June 20, 2025. Successful bidders will need to complete their payments by June 23, 2025, which is the date of the reissue.

Interest on the nominal value of the securities will begin accruing from the date of the original issue or the last coupon payment, and it will be paid out semi-annually. The securities will be redeemed at par upon maturity.

Earlier this month, the RBI also announced the reissue of two dated government securities totaling ₹32,000 crore, which included a 6.92% GS maturing on November 18, 2039, and a 6.90% GS maturing on April 15, 2065, with each bond issued for ₹16,000 crore.