Image Source: Deccan Chronicle
The RBI set minimum underwriting commitments for key government bonds, including ₹1.2B for the 2054 sovereign green bond, ₹1.67B for 2055 bonds, ₹2.62B for 2032 bonds, and ₹2.15B for 2028 bonds. The move ensures smooth debt issuance, investor confidence, and supports India’s fiscal and climate financing goals.
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Reserve Bank of India (RBI) announced fresh minimum underwriting commitments for upcoming government securities, including sovereign green bonds and long-term issues. This move is aimed at ensuring smooth debt issuance and strengthening investor confidence in India’s bond market.
Key Highlights
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Green Bond 2054: Minimum underwriting commitment fixed at ₹1.2 billion for the 6.98% sovereign green bond maturing in 2054.
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Long-Term Bonds: Commitments set at ₹1.67 billion for 2055 bonds, and ₹2.62 billion for 2032 bonds.
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Medium-Term Bonds: A commitment of ₹2.15 billion has been mandated for 2028 bonds.
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Strategic Intent: These measures ensure adequate participation from primary dealers, stabilizing demand and supporting India’s fiscal borrowing program.
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Broader Context: India’s sovereign green bonds are part of its climate financing strategy, while long-term bonds help manage fiscal needs and infrastructure funding.
Analysts note that the RBI’s underwriting framework reflects its proactive approach to maintaining liquidity and investor confidence in the government securities market.
Sources: RBI Announcements, Moneycontrol, Economic Times
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