Indian Government To Borrow Rs 6.55 Lakh Crore In Second Half Of FY24

Indian government is set to raise Rs 6.55 lakh through bonds with maturities ranging between 3 years and 50 years in the second half of FY24
Sovereign Debt
Sovereign Debt

The Indian government on Tuesday said it aims to raise Rs 6.55 lakh crore in the second half of 2023-24. The amount represents 42.45 percent of the total projected gross market borrowing of Rs 15.43 lakh crore for the entire year.

The borrowings will be in the form of dated securities, including the issuance of Rs 20,000 crore through Sovereign Green Bonds. A significant development is the debut of a 50-year security in the domestic debt market, according to a media report by CNBC-TV18.

The borrowing will be dispersed over 20 weekly auctions, with maturities ranging between 3 years and 50 years.

The distribution of borrowing across the maturities will be - 3-year (6.11 per cent), 5-year (11.45 per cent), 7-year (9.16 per cent), 10-year (22.90 per cent), 14-year (15.27 per cent), 30-year (12.21 per cent), 40-year (18.32 per cent), and 50-year (4.58 per cent).

The government will continue to undertake the switching of securities to manage its redemption commitments efficiently.

Of the budgeted Rs 1,00,000 crore for switching, Rs 51,597 crore has already been conducted, and the remaining switch auctions will be held during the second half.

Additionally, the government plans to retain an additional subscription of up to Rs 2,000 crore for each of the securities, exercising the greenshoe option.

The issuance will include Rs 7,000 crore under 91-day Treasury Bills (DTBs), Rs 8,000 crore under 182-day DTBs, and Rs 9,000 crore under 364-day DTBs for each auction conducted in this period.

Related Stories

No stories found.
Outlook Business & Money