Govt Borrowing
Govt to borrow INR 8.00 tln via gilts in Apr-Sep, 53.98% of FY26 target
This story was originally published at 20:51 IST on 27 March 2025
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--Govt: To auction INR 8.0 tln of gilts in Apr-Sept
--Govt: To auction INR 100 bln of green bonds in Apr-Sept
--Govt: WMA limit for Apr-Sept fixed at INR 1.5 tln
--Govt to conduct 26.2% of Apr-Sept borrowing via 10-year bonds
--Govt to conduct 5.3% of Apr-Sept borrowing via 3-year bonds
--Govt to conduct 11.3% of Apr-Sept borrowing via 5-year bonds
--Govt to conduct 8.2% of Apr-Sept borrowing via 7-year bonds
--Govt to conduct 14.0% of Apr-Sept borrowing via 15-year bonds
--Govt to conduct 10.5% of Apr-Sept borrowing via 30-year bonds
--Govt to conduct 14.0% of Apr-Sept borrowing via 40-year bonds
--Govt to conduct 10.5% of Apr-Sept borrowing via 50-year bonds
--Govt: To continue switches, buybacks to smoothen redemption profile
--Govt: To auction INR 2.47 tln of Treasury Bills in Apr-Jun
--Govt: To auction INR 1.17 tln of 91-day T-bills in Apr-Jun
--Govt: To auction INR 650 bln of 182-day T-bills in Apr-Jun
--Govt: To auction INR 650 bln of 364-day T-bills in Apr-Jun
--Govt: Weekly borrowing via T-bills in Apr-Jun seen at INR 190 bln
--Govt: Weekly gilt auction sizes to be INR 250 bln-360 bln per wk Apr-Sept
--Govt: To auction INR 1.25 tln of gilts in Apr
--Govt: To auction INR 1.56 tln of gilts in May
--Govt: To auction INR 1.25 tln of gilts in Jun
--Govt: To auction INR 1.20 tln of gilts in Jul
--Govt: To auction INR 1.53 tln of gilts in Aug
--Govt: To auction INR 1.21 tln of gilts in Sept
NEW DELHI – The central government will borrow INR 8.00 trillion through dated securities in Apr-Sep, accounting for 53.98% of the gross market borrowing target of INR 14.82 trillion in 2025-26 (Apr-Mar). The government did not add or remove any maturity bucket in the calendar from its prevailing pattern, a press release by the finance ministry Thursday showed.
On a net basis, the government's borrowing in Apr-Sep works out to be INR 5.93 trillion, which is around 51.4% of the total net borrowing for the year. The government bond maturity in the next financial year is almost evenly split between the two halves.
In the current financial year ending on Monday, the Centre issued dated securities worth INR 14.01 trillion, the same as the revised Budget estimate. The government plans to raise INR 100 billion through sovereign green bonds maturing in 30 years in Apr-Sept.
"The government will carry out switching/buyback of securities to smoothen the redemption profile," the release said.
The borrowing will be conducted in 26 weekly tranches of INR 250 billion-INR 360 billion, the calendar showed. The borrowing calendar is in line with market expectations of borrowing 53-55% of the full-year target in Apr-Sep, with traders also expecting issuances of INR 8 trillion. In FY25, the government had borrowed 52.81% of its full-year target in Apr-Sep.
The government will issue bonds worth INR 1.25 trillion each in April and June, INR 1.56 trillion in May – the highest issuance in a month in Apr-Sept – INR 1.20 trillion in July, INR 1.53 trillion in August and INR 1.21 trillion in September.
As is generally the case, the government will conduct the bulk of its borrowing through issuance of the 10-year bonds. According to the calendar, 26.2% of the bond issuances in Apr-Sept will be through sales of the 10-year paper. The borrowing pattern has changed from the previous year. Instead of once every three weeks, the government will issue the 10-year gilt once every four weeks, offering INR 300 billion of the bond per auction.
The 15- and 40-year bonds will be the most widely issued securities after 10-year bonds, accounting for 14.0?ch of the total borrowing. Sales of 30-year and 50-year gilts will each account for 10.5% of the half-year borrowing, with the former including the green bonds. This has brought down the share of long-term borrowing to 35.0% in Apr-Sept, the upper limit of the range suggested by bond market investors in discussions, from 37.5% in FY25.
Of the total government borrowing in Apr-Sep, 11.3% will be through sales of five-year gilts, while the seven-year bond will account for 8.2% of the calendar. The three-year bucket has the lowest quantum at 5.3% of the gross borrowing in the first half. The share of sub-7-year bonds has risen slightly from 23.5% in the first half of FY25.
The government said it could exercise the greenshoe option to retain an additional amount of up to INR 20 billion in each bond offered for sale at the weekly auction. It will also continue to carry out buybacks and gilt switches to smoothen redemptions. The switches will be conducted on the third Monday of every month. Separately, the Reserve Bank of India said it set the Centre's ways and means advances limit for Apr-Sept at INR 1.50 trillion, the same as a year ago.
The government also said it would issue INR 2.47 trillion worth of Treasury bills on a gross basis in Apr-Jun, compared with INR 2.61 trillion a year ago. Of the total borrowing, the government will sell INR 1.17 trillion of 91-day T-bills and INR 650 billion each of the 182-day and 364-day T-bills. The weekly auction size for 13 weeks in Apr-Jun will be INR 190 billion, the government said.
The following are key details of the government's borrowing for Apr-Sept:
| 2025-26 | 2024-25 | |
| (In INR billion) | (In INR billion) | |
| Apr-Sep gross borrowing | 8,000.00 | 7,396.97 |
| Full-year gross borrowing | 14,820.00 | 14,006.97 |
| % borrowing in Apr-Sept | 53.98% | 52.81% |
| Apr-Sept redemption |
2,067.01
|
1,955.46
|
| Apr-Sept net borrowing | 5,932.99 | 5,441.51 |
| Oct-Mar gross borrowing | 6,820.00* | 6,610.00 |
| Apr-Sept WMA limit | 1,500 | 1,500 |
* Implied gross borrowing in FY26 based on Apr-Sept calendar and Budget estimates
End
Reported by Aaryan Khanna
Edited by Saji George Titus
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