Government to sell securities worth Rs 27,000 crore in two tranches on May 23

The government of India has announced the sale (re-issue) of dated government securities worth Rs 27,000 on Friday.

The securities will be sold in two tranches with a coupon rate of 6.75 per cent for a amount of Rs 15,000 crore (maturing in 2029) and at 7.09 per cent for an amount of Rs 12,000 crore (maturing in 2054).

The amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) auction, applicable to each Primary Dealer (PD), are as under:

The underwriting auction will be conducted through multiple price-based methods on May 23 (Friday).

Primary Dealers (PD) can submit their bids for Additional Competitive Underwriting (ACU) auction electronically through Core Banking Solution (E-Kuber) System between 09:00 A.M. and 09:30 A.M. on the day of underwriting auction.

“The underwriting commission will be credited to the current account of the respective PDs with RBI on the day of issue of securities,” RBI said in a statement.
On March 27, the government notified the indicative calendar for the issuance of government-dated securities, including Sovereign Green Bonds (SGrBs), for the first half of the fiscal year 2025-26 (April 1, 2025, to September 30, 2025).

The indicative calendar for such auctions is released beforehand in order to enable institutional and retail investors to plan their investments efficiently and to provide transparency and stability to the Government Securities market.