Govt to raise ₹33,000 crore via sale of bonds on 5 Aug
Premium- Four government securities (G-secs) having rates from 6.54% to 7.10% will be auctioned through multiple price-based methods on RBI's Core Banking Solution (E-Kuber) system.
The Indian government will be raising ₹33,000 crore through the sale of bonds on Friday. RBI will be handling the auction. Four government securities (G-secs) having rates from 6.54% to 7.10% will be auctioned through multiple price-based methods on RBI's Core Banking Solution (E-Kuber) system. Primary dealers can submit their bids for ACU auction electronically.
In a statement, on Thursday, RBI said, "Government of India has announced the sale (re-issue) of Government Securities... through auctions to be held on August 05, 2022."
As per RBI, of the total, the highest G-sec aggregated to ₹13,000 crore with a coupon rate of 6.54% and to mature on 2032. The minimum bidding in this security is ₹310 crore.
Further, G-sec worth ₹9,000 crore will be offered with a coupon rate of 6.95% and tenure of 2061. The minimum bidding amount for this bond is ₹215 crore.
₹7,000 crore G-secs will be offered with a coupon rate of 7.10% and a maturity term of 2029. The minimum bidding amount for this bond is ₹167 crore.
The lowest government bonds were valued at ₹4,000 crore with a coupon rate of 6.69% and a maturity tenure of 2024. The minimum bidding amount for this bond is ₹96 crore.
According to RBI, the underwriting auction will be conducted through multiple price-based methods on August 05, 2022 (Friday). PDs may submit their bids for ACU auction electronically through the Core Banking Solution (E-Kuber) System between 10.30 A.M. and 11.00 A.M. on the date of the underwriting auction.
The underwriting commission will be credited to the current account of the respective PDs with RBI on the date of the issue of securities.
In another development, RBI announced that state governments have offered to sell stock by way of the auction for aggregating to ₹13,800 crore. The auction will be conducted on the RBI's core banking system (E-Kuber) on August 08, 2022 (Monday).
Under the state government stocks, RBI will determine the maximum yield/minimum price at which bids will be accepted. Stock will be issued for a minimum nominal amount of ₹10,000 and multiples of ₹10,000 thereafter. The new State Government Stocks will bear interest at the rates determined by RBI at the auctions. For the new stock, interest will be paid half yearly on February 10 and August 10 of each year till maturity.
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