Maharashtra Government to Sell ₹2,000 Crore, 12-Year Bonds

Mumbai : The Maharashtra Government is set to sell ₹2,000 crore worth of 12-year bonds (‘7.11% Maharashtra Government Bonds, 2036’) under the terms and conditions outlined in its revised notification. The funds raised through this loan will be utilized for financing the state’s development projects, as stated by Finance Secretary Shaila A. in an official release.

Under the competitive bidding process (revised), 10% of the total notified bond amount will be allocated to eligible individual and institutional investors. However, an individual investor can be allotted a maximum of 1% of the total notified amount.

The auction will be conducted by the Reserve Bank of India (RBI) at its Mumbai office on January 28, 2025. Bids for the auction must be submitted through the RBI’s Core Banking Solution (E-Kuber) system on the same day.

Competitive bids should be submitted via the E-Kuber system between 10:30 AM and 11:30 AM, while non-competitive bids can be submitted between 10:30 AM and 11:00 AM. The results of the auction will be published on the RBI website on the same day. Successful bidders must remit payment on January 29, 2025, through cash, banker’s cheque/payment order, demand draft, or cheques payable at the Reserve Bank of India, Mumbai, before the end of the working day.

The bond tenure will be 12 years, commencing on September 25, 2024, with full repayment of the principal on September 25, 2036. The bonds will carry an interest rate of 7.11% per annum, payable semi-annually on March 25 and September 25, starting from the bond’s issue date.

Investments in these government bonds by banks will qualify for the Statutory Liquidity Ratio (SLR) purposes under Section 24 of the Banking Regulation Act, 1949. Additionally, these bonds will be eligible for resale and repurchase transactions, as stated by the Finance Department.