Informist, Thursday, Sep 26, 2024

--Govt: To auction 6.61 trln rupees of gilts in Oct-Mar

--Govt releases Oct-Mar government bond auction calendar

--Govt: FY25 gilt issuance target at 14.01 trln rupees

--Govt: To raise 200 bln rupees via green bonds in Oct-Mar

--Govt to conduct 24.8% of Oct-Mar borrow via 10-year bonds

--Govt to conduct 15.9% of Oct-Mar borrow via 40-year bonds

--Govt to conduct 12.1% of Oct-Mar borrow via 30-year bonds

--Govt to conduct 13.2% of Oct-Mar borrow via 15-year bonds

--Govt: To auction 2.47 trln rupees of Treasury Bills Oct-Dec

--Govt to conduct 10.6% of Oct-Mar borrow via 5-year bonds

--Govt to conduct 5.3% of Oct-Mar borrow via 3-year bonds

--Govt to conduct 7.6% of Oct-Mar borrow via 7-year bonds

--Govt: To auction 2.47 trln rupees of Treasury Bills Oct-Dec

--Govt: To auction 910 bln rupees of 91-day T-bills Oct-Dec

--Govt: To auction 780 bln rupees of 182-day T-bills Oct-Dec

--Govt: To auction 780 bln rupees of 364-day T-bills Oct-Dec

--Govt: WMA limit for Oct-Mar fixed at 500 bln rupees

--Govt: To auction total 1.27 trln rupees of gilts in Feb
--Govt: To auction total 1.52 trln rupees of gilts in Jan
--Govt: To auction total 1.28 trln rupees of gilts in Dec
--Govt: To auction total 1.21 trln rupees of gilts in Nov
--Govt: To auction total 1.33 trln rupees of gilts in Oct
--Govt:To borrow 220-390 bln rupees per wk H2 via gilt auctions
--Govt: Oct-Mar gilt borrowing to conclude in week ending Feb 28

NEW DELHI - The government will borrow 6.61 trln rupees through the sale of dated securities in Oct-Mar, making up the remainder of the gross borrowing aim of 14.01 trln rupees for 2024-25 (Apr-Mar), the finance ministry said today. The government aimed to raise 7.50 trln rupees through dated securities in Apr-Sep. Of this, it has borrowed 7.06 trln rupees so far. With an auction worth 340 bln rupees scheduled for Friday, the government will run about 100 bln rupees short of the target for the first half.

The government will raise 200 bln rupees through sovereign green bonds maturing in 10 and 30 years as part of the borrowing programme, the ministry said in a release. The government had raised 200 bln rupees in 2023-24 in the second year of issuance of these securities. In Apr-Sep, the Centre had aimed to raise 120 bln rupees through sovereign green bonds but raised 16.97 bln rupees through two auctions.

According to the release, the government will sell dated securities worth 220-390 bln rupees per week in Oct-Mar with the last borrowing for the year in the week ending Feb 28.

The government will auction bonds worth 1.33 trln rupees in October, 1.21 trln rupees in November and 1.28 trln rupees in December, before ramping up to 1.52 trln rupees in five weeks in January and 1.27 trln rupees in February.

The government will also issue a total of 2.47 trln rupees worth of Treasury bills in Oct-Dec – 9l0 bln rupees of 91-day T-bills, and 780 bln rupees each of 182-day T-bills and 364-day T-bills.

As is generally the case, the government will conduct the bulk of its borrowing by issuing 10-year bonds. Including 100 bln rupees through sovereign green bonds, 24.8% of the Oct-Mar bond issuances will be through the sale of 10-year papers. This is a tad lower than its share in Apr-Sep.

The next biggest segment will be 40-year bonds at 15.9%. Sales of 15- and 30-year gilts will account for 13.2% and 12.1% of the second-half borrowing, respectively. The 30-year tenure will also include 100 bln rupees of sovereign green bonds, the same as Oct-Mar last year. The 50-year bond, introduced in Oct-Mar last year, will account for 10.60% of the Oct-Mar calendar. The government introduced the 15-year bond in Apr-Sep, replacing the 14-year bond.

Short-term bonds account for only a minor chunk of the borrowing programme. Of the total borrowing in the second half, 5.3% will be through three-year bonds, 7.6% through seven-year bonds and 10.6% through five-year bonds.

The government said it could exercise the greenshoe option to retain an additional amount of up to 20 bln rupees in each bond offered for sale at weekly auctions.

The government will issue 50 bln rupees of green bonds in one auction every month between November and February. The auctions will alternate between the 10-year and 30-year green bonds.

To take care of temporary mismatches in government accounts, the Reserve Bank of India has fixed the ways and means advances limit for the second half at 500 bln rupees, the release said.

Meanwhile, the government said it plans to carry out the remainder of its 1.50-trln-rupee budgeted gilt switch target in Oct-Mar, which would come to 345.28 bln rupees, taking into account the operations already undertaken.

Following is the breakup of each tenure of dated security to be issued in the calendar, including green bonds:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Aaryan Khanna

With inputs from Siddhi Chauhan

Edited by Akul Nishant Akhoury

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