New Delhi [India], August 19 : The government has announced the re-issue of two government securities (G-Secs) with a total notified amount of Rs 36,000 crore through an auction to be conducted by the Reserve Bank of India (RBI) on August 22, 2025.
According to the official notification the re-issuance will include Rs 6,000 crore of 5.91 per cent Government Security (GS) 2028 and Rs 30,000 crore of 6.33 per cent GS 2035.
In addition, the government will have the option to retain an additional subscription of up to Rs 2,000 crore against each of the two securities.
The auction will take place at the RBI's Mumbai office. Bids will be submitted electronically through the RBI Core Banking Solution (E-Kuber) system. Non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m., while competitive bids will be accepted from 10:30 a.m. to 11:30 a.m. on the same day.
Competitive bids are placed mainly by large institutions, where they quote the yield or price at which they want to buy, and allotment depends on the cut-off decided in the auction.
Non-competitive bids, meant for small investors and eligible institutions, do not require quoting any yield or price; instead, securities are allotted at the average auction price.
The government has also kept provisions for allotment to non-competitive bidders, including eligible individuals and institutions. Up to 5 per cent of the notified amount of sale will be reserved under the Non-Competitive Bidding Facility in the auctions of government securities.
The results of the auction will be announced on August 22, 2025, on the RBI website. Successful bidders will be required to make payment on August 25, 2025, which will also be the date of re-issue. Payments will include accrued interest from the date of original issue or last coupon payment to August 24, 2025.
For 5.91 per cent GS 2028, interest will be paid half-yearly on June 30 and December 30, while for 6.33 per cent GS 2035, interest will be paid on May 5 and November 5 each year. Both securities will be repaid at par upon maturity, June 30, 2028, for the first and May 5, 2035, for the second.
The RBI stated that the auction will be price-based for re-issued securities. Under this system, successful bids are accepted at the respective quoted yield or price. The minimum bid size for these securities will be Rs 10,000 and in multiples of Rs 10,000 thereafter.
The govt time to time issues these securities as a part of its regular borrowing program, helping it meet financing needs.
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