Market Borrowings

Borrowing in H2 includes issuing of ₹10,000 crore through sovereign green bonds (SGrBs)

India plans to borrow 14.82 trillion rupees for the current financial year ending March 31, of which it is scheduled to borrow 6.8 trillion rupees in October-March

Private credit solves two gaps in the market: It helps where the banking system is unable to and offers bespoke solutions to corporate borrowers' specific needs

India's finance ministry and central bank officials will meet on Wednesday to decide the country's market borrowing plan for April and September

The yield on 30-year British gilts rose sharply on Tuesday and again on Wednesday, outpacing increases for other governments' bonds and hitting its highest since August 1998 at 5.383 per cent

Sales in the fiscal year starting April 1, 2025, are likely to be higher on redemption of debt issued during the Covid years

Amount, which is 47% of gross borrowing target, will be realised via 21 weekly auctions

State governments raise funds from the market to meet budgetary requirements by floating government securities (G-sec) and bonds bearing different maturities

The yield on the benchmark 10-year government bond declined by 12 basis points (bps) in 2024 from 7.17 per cent to 7.05 per cent on February 1, 2024

The union territory of Jammu and Kashmir (J&K) raised Rs 1,100 crore by issuing paper with the longest tenure of 30 years

Government will also issue Treasury bills worth Rs 3.12 trillion in the third quarter of 2023-24. Each of these weekly T-bill auctions will be to the tune of Rs 24,000 crore

Aditi Nayar, chief economist, ICRA, said the indicative borrowing amount for Q3FY24 is broadly along expected lines

To borrow Rs 6.55 trillion in second half

The government on Tuesday said it will borrow Rs 6.55 lakh crore in the second half of 2023-24 through dated securities, including Rs 20,000 crore through issuance of Sovereign Green Bonds (SGrBs). The government meets its fiscal deficit mainly through market borrowings. The government had projected gross market borrowing of Rs 15.43 lakh crore for 2023-24. "...the Government of India has decided to borrow the balance amount of Rs 6.55 lakh crore (42.45 per cent of Rs 15.43 lakh crore) in the second half of the fiscal year 2023-24 through dated securities, including Rs 20,000 crore through issuance of Sovereign Green Bonds (SGrBs)," the finance ministry said in a statement. "Responding to market demand for longer duration securities, 50-year security will be issued for the first time," it added. The gross market borrowing of Rs 6.55 lakh crore will be completed through 20 weekly auctions. The market borrowing will be spread over 3, 5, 7, 10, 14, 30, 40 and 50-year securities. The

Sebi removes penalty, introduces incentives

India aims to borrow a gross Rs 15.43 trillion via a sale of bonds this financial year. About 42% of that is due to be borrowed in October-March

Market borrowings by India's state governments are likely to be lower than the amounts indicated in their budgets, as off-balance sheet liabilities will continue to be adjusted in this fiscal year

Despite near 60 per cent more supplies, the states continued to pay more for their market borrowing with the average bond pricing rising by 7 basis points to a multi-week high of 7.68 per cent at the weekly auction on Tuesday. For the past many weeks, the yields were more or less stagnant and so was the debt-raising. Fourteen states raised a record-high Rs 32,800 crore from the market by issuing state government securities (SGS), which is a sharp 59 per cent higher than the year-ago level, even though the amount is 8 per cent lower than indicated in the auction calendar, Aditi Nayar, the chief economist & head of research at Icra Ratings said in a review note. She said the 7 bps rise in the weighted average cut-off to 7.68 per cent is due to the concerns related to monetary tightening as latest inflation numbers surprised on the downside. However, despite the all-time high borrowing and a mild increase in the weighted average tenor to 16 years from 15 years, the spread between the

Green bonds can help lower borrowing cost

Nevertheless, as a proportion of GDP, fiscal deficit is expected to ease to 5.8 per cent from 6.4 per cent