Govt bonds worth ₹32,000 crore to be auctioned on September 26

New Delhi, Sep 22:
The Finance Ministry has announced the sale of government bonds worth ₹32,000 crore in two lots through auctions to be conducted by the Reserve Bank of India (RBI) in Mumbai on Friday, September 26.

The first lot includes the 6.68% Government Security 2040 for a notified amount of ₹16,000 crore, while the second lot comprises the 6.90% Government Security 2065 for the same amount.

Both securities will be sold via a price-based auction using the multiple price method. The government will also have the option to retain an additional subscription of up to ₹2,000 crore for each security.

As per the Scheme for Non-Competitive Bidding Facility, up to 5% of the notified amount will be reserved for eligible individuals and institutions.

Bidding will take place electronically on the RBI’s Core Banking Solution (E-Kuber system) on September 26.

• Non-competitive bids: 10:30 a.m. to 11:00 a.m.

• Competitive bids: 10:30 a.m. to 11:30 a.m.

The auction results will be declared the same day, with payment by successful bidders scheduled for September 29.

The securities will also be eligible for “When Issued” trading in line with RBI’s guidelines on Central Government Securities.

Government bonds are debt instruments issued by the government to raise funds. They are considered low-risk investments, as they are backed by the government, though they generally offer lower interest rates compared to riskier assets.