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HomeNewsBusinessRBI sets 7.46% coupon on 50-year bonds; raises Rs 10,000 crore

RBI sets 7.46% coupon on 50-year bonds; raises Rs 10,000 crore

This is the first time that the government has issued a 50-year security. So far, it has issued bonds with maturity of up to 40 years

November 03, 2023 / 14:41 IST
Bonds

The Reserve Bank of India (RBI) on November 3 set a coupon rate of 7.46 percent on the new government security maturing in 2073 during the weekly bond auction, the central bank said in a release.

Through this bond, the government raised Rs 10,000 crore, the release added.

The Centre, in the second half of the borrowing calendar, had for the first announced the 50-year security due to demand for long-term securities.

"Responding to market demand for longer duration securities, 50-year security will be issued for the first time," the finance ministry said in a statement on September 26.

So far, the government has been issuing bonds with maturity of up to 40 years.

The finance ministry had said the Centre would borrow Rs 6.55 lakh crore by issuing government securities in the second half of 2023-24, with green bonds worth Rs 20,000 crore a part of the programme.

The Budget for 2023-24 had pegged the Centre's full-year gross borrowing programme at a record Rs 15.43 lakh crore on a gross basis and Rs 11.8 lakh crore in net terms.

The RBI manages the borrowing programme on behalf of the government by issuing bonds via auctions every week.

During the weekly bond auction on November 3, the RBI set an implicit yield at a cut-off of 7.3145 percent on 10-year benchmark 7.18 percent 2033 bonds and raised Rs 13,000 crore. Similarly, the implicit yield at cut-off on 7.37 percent 2028 set at 7.2909 percent, and raised Rs 7,000 crore.

Moneycontrol News
first published: Nov 3, 2023 02:41 pm

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