State govt's raise Rs 14,800 crore through auction of state government securities: RBI
Mumbai, June 9
State governments and Union Territories collectively raised Rs 14,800 crore through an auction of State Government Securities conducted by the Reserve Bank of India, according to an official statement released by the central bank.
According to the auction results announced on June 9, the entire notified amount of Rs 14,800 crore was accepted by the RBI on behalf of participating states and Union Territories.
Bihar raised Rs 1,600 crore through the re-issue of its 7.92 per cent SGS 2051 security, with a cut-off price of Rs 101.20 and a yield of 7.8084 per cent.
Chhattisgarh raised a total of Rs 1,000 crore through two securities. The state raised Rs 500 crore through the re-issue of its 7.37 per cent SGS 2031 at a yield of 7.1782 per cent and another Rs 500 crore through the re-issue of its 7.83 per cent SGS 2040 at a yield of 7.8293 per cent.
Gujarat mobilised Rs 2,500 crore through two securities, including Rs 1,500 crore through an 11-year bond at a yield of 7.63 per cent and Rs 1,000 crore through a 14-year bond at a yield of 7.70 per cent.
Jammu and Kashmir raised Rs 500 crore through a 25-year security at a yield of 7.81 per cent.
Kerala mobilised Rs 2,800 crore through three securities. The state raised Rs 400 crore through the re-issue of its 7.60 per cent SGS 2033, Rs 1,000 crore through the re-issue of its 7.81 per cent SGS 2037 and Rs 1,400 crore through the re-issue of its 7.86 per cent SGS 2042. The respective yields stood at 7.5289 per cent, 7.7485 per cent and 7.8282 per cent.
Madhya Pradesh raised Rs 1,800 crore through two securities, including Rs 1,200 crore through the re-issue of its 7.86 per cent SGS 2042 and Rs 600 crore through the re-issue of its 7.90 per cent SGS 2056. The yields stood at 7.8271 per cent and 7.7936 per cent respectively.
Manipur and Mizoram raised Rs 300 crore and Rs 100 crore respectively through securities with yields of 7.79 per cent.
Tamil Nadu mobilised Rs 2,500 crore through three re-issued securities. The state raised Rs 1,000 crore through its 7.69 per cent SGS 2033 at a yield of 7.4399 per cent, another Rs 1,000 crore through its 7.74 per cent SGS 2036 at a yield of 7.6309 per cent and Rs 500 crore through its 7.80 per cent SGS 2041 at a yield of 7.7495 per cent.
Uttar Pradesh raised Rs 1,700 crore through two securities, comprising Rs 700 crore through a 12-year bond at a yield of 7.74 per cent and Rs 1,000 crore through a 20-year bond at a yield of 7.82 per cent.
The RBI said the total amount accepted under the auction stood at Rs 14,800 crore, matching the total amount notified by the participating states and Union Territories.
— ANI
Reader Comments
Interesting to see Kerala raising the most at Rs 2,800 crore. They're always running tight on revenue, so this makes sense. But 7.8% yield for 20-year bonds seems high, adding to their debt burden. Hope the state plans to use it wisely for social schemes.
Honestly, these bonds are a good way for states to borrow without always going to the Centre. But as a taxpayer, I worry about the repayment capacity. Tamil Nadu and Gujarat raising big amounts at reasonable yields is a positive sign of investor confidence. Let's hope this funds real development.
The yield differentials are interesting—7.17% for Chhattisgarh's 2031 bond vs 7.83% for 2040. Shows how market perceives risk and duration. But woah, Jammu & Kashmir borrowing at 7.81% for 25 years is steep. Must be for long-term projects, but hope they manage the interest burden. 🤔
As someone who invests in bonds, these SGS are actually decent for conservative portfolios. Upset ho gaya ki retail investors can't directly buy these in small amounts. But happy to see states like UP and MP raising funds at these rates—better than other options. Just hope the money doesn't get wasted in subsidies.
Good to see RBI facilitating these auctions efficiently. But I wish the Centre would give states more fiscal autonomy instead of forcing them into market debt. Manipur raising just Rs 300 crore—shows how smaller states struggle. Need a more equitable borrowing mechanism.
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