Govt to switch Rs 30,000 crore of bonds for longer tenure securities

Such switches happen to enable the government repay the loans at a later date to ease the strain on the exchequer in the immediate term.

The government will be converting a bond maturing this year worth Rs 30,000 crore into longer tenure bonds, including one that matures in 40 years. 

The Reserve Bank of India (RBI) will be conducting the auction on May 18, it said on its website. 

The central bank notified it will be switching the bond maturing in June this year in favour of three bonds maturing in 2024, 2030, and 2060. 

The government will use 2024 bonds to switch Rs 13,000 crore, 2030 for Rs 13,000 crore, and Rs 4,000 for the 40-year paper. 

While such switching is fairly common, converting bonds maturing in a