Govt to raise ₹6.77 tn via bonds in Oct–Mar, lines up ₹10k cr green debt

New Delhi: The government aims to raise ₹6.77 trillion through sale of dated securities between October 2025 and March 2026, including ₹10,000 crore via the so-called green bonds, according to the borrowing calendar for the second half of fiscal year 2026 (FY26) unveiled by the finance ministry on Friday.

Prepared in consultation with the Reserve Bank of India (RBI), the schedule is designed to ensure transparency and stability in the government securities (G-Secs) market, while enabling institutional and retail investors to plan their allocations, the ministry said in a statement.

The borrowing programme will be executed through 22 weekly auctions, with amounts ranging from ₹28,000 crore to ₹33,000 crore.

Ten-year bonds will form the backbone of the strategy, with multiple tranches of ₹32,000 crore each, the ministry of finance said. On Friday, the central government's benchmark 10-year bond yield closed at 6.52%, up 0.39% from the previous close, according to Bloomberg data.

The government will offer sovereign bonds across maturities—3, 5, 7, 15, 30, 40, and 50-year tenors—aimed at maintaining a balanced yield curve, it added.

Sovereign green bonds are set to feature in the calendar, with two 30-year issuances of ₹5,000 crore each scheduled for 27–31 October and 24–28 November.

These green bonds form part of the government’s broader FY26 target of mobilizing ₹25,342 crore for climate-focused projects. So far, only ₹5,000 crore has been raised through these papers in the first half of the fiscal year.

Mint reported on 25 September citing sources that, amid muted investor appetite for green bonds, the government may scale back its FY26 climate financing target.

The calendar also maintains provisions for non-competitive bidding, with 5% of each auction reserved for retail investors.

The government retains the flexibility to adjust issuance sizes, tenors, or instruments, including floating rate bonds or inflation-indexed securities, in response to evolving market conditions, and may also exercise a greenshoe option to accommodate additional demand.

“Like in the past, the Government of India, in consultation with the Reserve Bank of India, will continue to have the flexibility to bring about modifications in the above calendar in terms of indicated amount, issuance period, maturities, etc. and to issue different types of instruments, including instruments having non-standard maturity, floating rate bonds (FRBs), inflation indexed bonds (IIBs), depending upon the requirement of the Government of India, evolving market conditions and other relevant factors, after giving due notice to the market,” the ministry in the statement.

“The calendar is subject to change, if circumstances so warrant, including for reasons such as intervening holidays,” it added.

Meanwhile, in a separate statement, the ministry of finance announced the Treasury Bill (T-bill) auction calendar for the quarter ending December 2025, targeting ₹2.47 trillion through short-term government securities during the period.

The borrowing programme will feature weekly auctions of 91-day, 182-day, and 364-day T-bills, with amounts of ₹7,000 crore, ₹6,000 crore, and ₹6,000 crore, respectively, per auction.

A T-bill is a short-term government debt instrument with maturities of up to one year. Unlike traditional bonds, T-bills do not pay regular interest. Instead, they are sold at a discount and redeemed at face value, with the difference serving as the investor’s return.