Govt to raise ₹8.88 lakh cr in first half of FY24; sovereign green bonds issuance in H2
1 min read 29 Mar 2023, 10:41 PM ISTRBI will be issuing four government-dated securities each worth ₹1.36 lakh crore in April, June, August, and September 2023. While in May, five securities worth ₹1.69 lakh crore will be issued. July month will see the highest securities issuance -- a total of five dated bonds --- worth ₹1.75 lakh crore.
PremiumThe Reserve Bank of India (RBI) in consultation with the government has announced the borrowing limit for the first half of FY24. About ₹8.88 lakh crore of government-dated securities will be issued in H1FY24. RBI said, the issuance of sovereign green bonds will be announced in the second half of the fiscal.
In a statement, RBI said, "to enable institutional and retail investors to plan their investments efficiently and provide transparency and stability to the Government securities market, the Reserve Bank of India, in consultation with the Government of India, hereby, notifies the indicative calendar for issuance of Government dated securities for the first half of the fiscal year 2023-24."
The first half of FY24 would be from April 1, 2023, to September 30, 2023.
RBI will be issuing four government-dated securities each worth ₹1.36 lakh crore in April, June, August, and September 2023. While in May, five securities worth ₹1.69 lakh crore will be issued. July month will see the highest securities issuance -- a total of five dated bonds --- worth ₹1.75 lakh crore.
RBI said, as hitherto, all the auctions covered by the calendar will have the facility of a non-competitive bidding scheme under which 5 per cent of the notified amount will be reserved for the specified retail investors.
Further, the central bank said, like in the past, RBI in consultation with the government will continue to have the flexibility to bring about modifications in the above calendar in terms of notified amount, issuance period, maturities, etc., and to issue different types of instruments, including instruments having non-standard maturity, floating rate bonds (FRBs), CPI linked inflation-indexed bonds (IIBs), depending upon the requirement.
Notably, RBI reserves the right to exercise the greenshoe option to retain additional subscriptions up to ₹2,000 crore against each of the securities indicated in the auction notification.
Additionally, RBI will also conduct switches of dated securities through an auction on the third Monday of every month or at more frequent intervals. In case the third Monday is a holiday, the switch auction will be conducted on the fourth Monday of the month.
Lastly, RBI said, the issuance of Sovereign Green Bonds will be announced in the second half of the fiscal year 2023-24.
