More Stories

Informist, Thursday, Sep 26, 2024

--Econ secy: Lowered Oct-Dec T-bill borrow on current holding level 
--CONTEXT:Econ secy's comments after release of H2 mkt borrow calendar 
--Econ secy: Need to see if demand for green bonds improves in Oct-Mar  

NEW DELHI – The finance ministry is waiting to see if demand for sovereign green bonds improves in Oct-Mar, Economic Affairs Secretary Ajay Seth said today. The government is set to raise 200 bln rupees through 10-year and 30-year green securities in the second half of the fiscal year, as per the indicative calendar released today. 

"The demand for green bonds was low in the H1 (Apr-Sep)," Seth said. The government had raised only 16.97 bln rupees in Apr-Sep out of the 120 bln rupees committed in the borrowing calendar. 

Since their launch in 2022-23 (Apr-Mar), the government has so far raised 376.97 bln rupees through green securities, to finance environment-friendly projects. Besides the maiden issuance, which received a greenium of 6 basis points, subsequent auctions of 5- and 10-year sovereign green bonds have only achieved 1-5 bps of greenium. 

The government also released its calendar indicating the treasury bill issuances during Oct-Dec. The government will issue T-bills worth 2.47 trln rupees in the quarter ending Dec 31, compared with 3.12 trln rupees during the same period a year ago. 

"The T-bill borrowings have been moderated considering the current holding level and estimated cashflows," Seth said. The government had also revised down its gross T-bill issuances by 600 bln rupees in the quarter ended June, and by 400 bln rupees in Jul-Sep, owing to a high cash balance.

In the full Budget for the current financial year ending March, the government has slashed its net borrowing through T-bills to (-)500 bln rupees from 500 bln rupees in the Interim Budget.  End

Reported by Krity Ambey and Sagar Sen 

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.