India to Sell Bonds via Multiple Price Method: ₹32,000 Cr Across 4 Tenors

The Government of India has announced a major bond auction through the Reserve Bank of India, employing the multiple price auction method where successful bidders pay the price they bid, enhancing market efficiency and ownership diversification. The total notified amount is ₹320 billion, divided across four securities with various maturities and coupon rates.

Key Highlights:

₹50 billion of 0.00% bonds maturing in 2054, which are zero-coupon or STRIPS-style bonds.

₹70 billion of 7.24% bonds maturing in 2055, offering a long-term fixed coupon.

₹110 billion of 6.28% bonds maturing in 2032, medium-to-long-term fixed coupon bonds.

₹90 billion of 5.91% bonds maturing in 2028, shorter-dated fixed coupon papers.

Auctions will be conducted electronically via RBI's e-Kuber platform with competitive and non-competitive bidding.

Multiple price method resumed fully this financial year after RBI assessed it beneficial for market development by diversifying bond ownership.

Recent auctions have seen strong investor interest despite market volatility and rising yields.

The funds raised will support government expenditure and borrowing needs while aiming for fiscal prudence.

This auction reflects the Indian government's strategy to raise long-term funds in a way that balances fiscal needs, market stability, and investor base expansion.

Sources: Reserve Bank of India (RBI), Economic Times, Reuters, Bloomberg