India Plans Major Borrowing in Second Half of 2024-25 Fiscal Year

India's Ministry of Finance plans to borrow Rs 6.61 lakh crore, or 47.2% of the total Rs 14.01 lakh crore budgeted for 2024-25, through dated securities, including Rs 20,000 crore of Sovereign Green Bonds. The borrowing will occur via 21 weekly auctions and span multiple maturities.

India's Ministry of Finance has announced plans to borrow Rs 6.61 lakh crore, representing 47.2% of the total gross market borrowing budgeted for 2024-25. This borrowing will be executed in the second half of the fiscal year, through the issuance of dated securities including Rs 20,000 crore of Sovereign Green Bonds (SGrBs).

The government, in collaboration with the Reserve Bank of India, has finalized its borrowing strategy for the latter half of 2024-25. The Rs 6.61 lakh crore will be raised through 21 weekly auctions.

The borrowing will be distributed across various maturities: 3-year (5.3%), 5-year (10.6%), 7-year (7.6%), 10-year (24.8%), 15-year (13.2%), 30-year (12.1%), 40-year (15.9%), and 50-year (10.6%) securities. The Government also reserves the right to retain an additional subscription of up to Rs 2,000 crore against each of the securities, as per auction notifications.

(With inputs from agencies.)