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Indian Government Auction Bonds 2026, 2030, 2036 & 2063 | Sale Announcement

Government Auction Bonds: The Indian Government is conducting an auction for the sale of bonds in 2026, 2030, 2036, and 2063. This article provides an overview of the auction, the bonds on offer, and the methodology. Investors are encouraged to participate and support India’s development.

Introduction to Government Auction Bonds Sale Announcement

The Government of India (GoI) has recently made an important announcement regarding the sale of government securities through auctions. This move aims to raise funds for various developmental initiatives and economic growth. The auction will include the sale or re-issue of four different bonds: ‘6.99% GS 2026,’ ‘7.17% GS 2030,’ ‘7.41% GS 2036,’ and ‘New GS 2063.’ Let’s delve into the details of this auction and the bonds on offer.

Details of Government Securities Offered & Government Auction Bonds 2026, 2030, 2036 & 2063

The auction will consist of the following government securities:

  1. ‘6.99% Government Security 2026’: The GoI plans to raise funds through this bond for a notified amount of Rs 8,000 crore (nominal).
  2. ‘7.17% Government Security 2030’: This bond aims to generate funds for a notified amount of Rs 7,000 crore (nominal).
  3. ‘7.41% Government Security 2036’: The GoI intends to raise funds through this bond for a notified amount of Rs 12,000 crore (nominal).
  4. ‘New Government Security 2063’: This bond aims to raise funds for a notified amount of Rs 12,000 crore (nominal).
Bond NamePurposeNotified Amount (Rs. crore)
6.99% Government Security 2026Raise funds8,000
7.17% Government Security 2030Generate funds7,000
7.41% Government Security 2036Raise funds12,000
New Government Security 2063Raise funds12,000
Government Auction Bonds 2026, 2030, 2036 & 2063

Auction Methodology

The auction for these government securities will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on June 09, 2023 (Friday). The auction will employ a price-based auction using the uniform price method for ‘6.99% GS 2026,’ ‘7.17% GS 2030,’ and ‘7.41% GS 2036.’ For the ‘New GS 2063’ bond, a yield-based auction using the multiple price method will be utilized. The GoI also has the option to retain an additional subscription of up to Rs. 2,000 crore against each security mentioned above.

Eligibility for Non-Competitive Bidding Facility

Under the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities, eligible individuals and institutions can receive an allotment of up to 5% of the notified amount of the securities sale.

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Submission of Bids and Auction Schedule

Interested bidders, both competitive and non-competitive, must submit their bids electronically through the Reserve Bank of India Core Banking Solution (E-Kuber) system on June 09, 2023. The non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m., while the competitive bids should be submitted between 10:30 a.m. and 11:30 a.m.

Announcement of Auction Results and Payment Dates

The results of the auctions will be announced on June 09, 2023 (Friday). Successful bidders are required to make payments on June 12, 2023 (Monday).

“When Issued” Trading Eligibility for the Securities

The government securities offered in this auction will be eligible for “When Issued” trading. This trading option allows investors to trade the securities before their official issuance. The guidelines for “When Issued” transactions in Central Government Securities are provided by the Reserve Bank of India in circular No. RBI/2018-19/25 dated July 24, 2018, and subsequent amendments.

In conclusion, the Government of India’s auction of ‘6.99% GS 2026,’ ‘7.17% GS 2030,’ ‘7.41% GS 2036,’ and ‘New GS 2063’ bonds presents an opportunity for investors to contribute to the nation’s development while earning returns on their investments. Interested individuals and institutions should carefully review the auction details, submit their bids within the specified timeframe, and stay tuned for the auction results and payment dates.

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