RBI announces auction of two dated securities worth Rs 25000 crore

NEW DELHI: The Government of India has announced the auction of two dated securities worth a total of Rs 25,000 crore, as per an official notification issued by the Reserve Bank of India (RBI).

According to the notification, the auction includes a new Government Security (GS) maturing on July 14, 2032, worth Rs 11,000 crore, and a re-issue of the 7.09 per cent GS maturing on November 25, 2074, worth Rs 14,000 crore.

The government also has the option to retain an additional subscription of up to Rs 2,000 crore for each of the securities.

The auction will be conducted by the Reserve Bank of India (RBI) through its Mumbai office using the e-Kuber system on July 11, 2025 (Friday), and the settlement will be completed on July 14, 2025 (Monday).

RBI stated, “Government of India (GoI) has announced the sale (issue / re-issue) of two dated securities for a notified amount of Rs 25,000 crore”.

A dated security is a type of government bond issued with a fixed maturity date and interest rate, and it pays interest to the investor at regular intervals, usually every six months. These are long-term borrowings by the government to finance its fiscal needs.

On the other hand, a re-issue of securities refers to the sale of an existing security that has already been issued in the past. Re-issued securities carry the same terms, such as interest rate and maturity date, as the original issue but are sold in a fresh auction to raise additional funds.

RBI noted that the auction will follow a multiple-price method where both competitive and non-competitive bids can be submitted electronically on the RBI’s e-Kuber platform.

Non-competitive bids are allowed between 10:30 a.m. and 11:00 a.m., while competitive bids can be submitted from 10:30 a.m. to 11:30 a.m. on the day of the auction.

The results will be announced on the same day, and successful bidders must make payments by the settlement date. Primary Dealers can also submit bids for underwriting the Additional Competitive Underwriting (ACU) portion between 9:00 a.m. and 9:30 a.m. on the same day.

The securities will be eligible for “When Issued” trading from July 8 to July 11, 2025. They will be issued in a minimum amount of Rs 10,000 and in multiples of Rs 10,000 thereafter.

Up to 5 per cent of the notified amount of each security is reserved for eligible individuals and institutions under the non-competitive bidding facility, which can also be accessed through the Retail Direct portal. Interest on these securities will generally be paid half-yearly.

The RBI has also stated that in the event of technical failures, physical bids may be submitted in exceptional cases using prescribed forms. Investors are allowed to place multiple competitive bids, provided the total does not exceed the notified amount. (ANI)