During H1FY24, Government of India will borrow Rs 8880 billion which is 57.48% of total budgeted borrowing for FY24. RBI will conduct 26 weekly auctions of government securities during the above mentioned period. During H1FY23, GoI had borrowed Rs 8010 billion.
- Out of total issuance, 10-year maturity bonds will contribute the largest amount of 20.50% followed by 14 &40 years bonds of 17.57% each. 30-year bond issuance will contribute 16.10%. 3,5 & 7-years maturity bond issuance will constitute 6.31%, 11.71% and 10.25% respectively.
- The issuance of Sovereign Green Bonds will be announced in the second half of the fiscal year 2023-24.
Maturity | Issuance amount (Rs billion) | % of total issuance |
3 years | 560 | 6.31% |
5 years | 1040 | 11.71% |
7 years | 910 | 10.25% |
10 years | 1820 | 20.50% |
14 years | 1560 | 17.57% |
30 years | 1430 | 16.10% |
40 years | 1560 | 17.57% |
Gross Total | 8880 | 100% |
The government will issue different types of instruments having non-standard maturities and Floating Rate Bonds, including CPI linked inflation-linked bonds, depending upon the requirement. RBI will also conduct switches of securities operation through an auction on every third Monday of the month. Moreover, The Reserve Bank of India, in consultation with the Government of India, reserves the right to exercise the green shoe option to retain additional subscription up to Rs 20 billion against each of the securities indicated in the auction notification.
Regular government borrowing is in addition to bond switches where the government will buy short end and issue long end bonds to elongate the maturity of debt and helps relieve stress on near term bond maturity repayments. During H1FY24, the matured amount of government bonds stood at Rs 1587.63 billion.