Govt may issue sovereign bonds in phases, first lot to be of $3-4 billion

In a bid to set a benchmark and create a market for its planned overseas sovereign bonds this year, the Narendra Modi government is likely to make its first tranche of the maiden issue no less than $3-4 billion. The bonds will likely be simultaneously launched in major financial centres such as London, Singapore, Hong Kong, New York and others. Also, the government favours a term of no less than 20 years for the bonds.

Earlier this month, Finance Secretary Subhash Chandra Garg had told Business Standard that the maximum limit of the sovereign bonds will be 10 per cent