New Delhi: In a move to meet its fiscal requirements, the Government of India has announced the re-issue of two dated government securities (G-Secs) through an auction scheduled for July 25, 2025, aiming to raise a total of ₹36,000 crore. The Reserve Bank of India (RBI) will conduct the auction on behalf of the government via its electronic platform, e-Kuber, at its Mumbai office.
Auction Details
The re-issuance includes the following bonds:
- ₹6,000 crore through the 5.91% Government Security 2028, which will mature on June 30, 2028.
- ₹30,000 crore through the 6.33% Government Security 2035, maturing on May 5, 2035.
The government has also kept the option to retain an additional ₹2,000 crore for each security, based on demand, potentially pushing the total amount to ₹40,000 crore.
Purpose of the Fundraising
The bond issuance is part of the government’s strategy to finance the fiscal deficit, which arises when expenditure exceeds revenue. Funds raised through such securities help support various national initiatives, including infrastructure development, welfare schemes, subsidies, and salaries, without placing an immediate burden on taxpayers.
Government bonds are considered safe investment instruments, backed by the sovereign guarantee of the Indian government, making them attractive to both institutional and retail investors.
Participation and Trading
- The auction will be conducted through the multiple price method, where successful bidders pay the price they bid.
- Investors can participate through competitive and non-competitive bidding, with retail participation facilitated via the RBI Retail Direct platform.
- The minimum bid size is ₹10,000 and in multiples thereafter.
- Primary Dealers can submit bids for underwriting the Additional Competitive Underwriting (ACU) portion between 9:00 a.m. and 9:30 a.m. on auction day.
- These securities will be available for “When Issued” trading from July 22 to July 25, allowing secondary market trading before official issuance.
- The bonds are eligible for repurchase (repo) transactions and can be purchased by non-resident investors under the Fully Accessible Route (FAR) in accordance with RBI guidelines.
Settlement and Results
The results of the auction will be announced on July 25, the same day it is conducted. All successful bidders will be required to make payment on July 28, 2025.
