RBI announces auction of state government securities totaling ₹22,200 crore. Assam, Bihar, and four other states to reissue bonds with tenors up to 20 years.
State Government Securities Auction: ₹22,200 Crore
The Reserve Bank of India has announced an auction for state government securities (SGS) with a total face value of ₹22,200 crore. Participating states include Assam, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, and Telangana. The auction involves re-issuance of existing securities, including the 7.83% Assam SGS 2046.
Assam will reissue ₹800 crore of its 7.83% bonds maturing in 2046. The auction type is price-based. Other states will issue securities with varying tenors, reflecting their borrowing programs for the fiscal year. The RBI acts as the auctioneer and settlement agent under the Public Debt Act, 1944.
Market participants and legal advisors should note the continuing trend of states accessing bond markets through reissuance (‘reopenings’), which enhances liquidity and price discovery. These auctions are critical for state fiscal management and offer investment opportunities in municipal and sovereign-like debt instruments.