Maharashtra Government to Auction Bonds Worth ₹2,500 Crore with 12 to 15-Year Maturity

Maharashtra Government’s 14-Year Bonds Worth ₹1,000 Crore for Sale

Mumbai : The Maharashtra government is set to auction ₹1,000 crore worth of bonds with a 14-year maturity under the terms and conditions outlined in the revised government notification. The funds raised through these bonds will be utilized for the state’s developmental projects, according to Finance Department Secretary Shaila A.

Under the revised non-competitive bidding method, 10% of the total notified government bond amount will be allocated to eligible individual and institutional investors. However, a single investor can receive a maximum of 1% of the total notified amount.

The Reserve Bank of India (RBI) will conduct the auction at its Mumbai office on February 25, 2025. Bids must be submitted electronically through the RBI’s Core Banking Solution (E-Kuber) system on the same day. Competitive bids will be accepted between 10:30 AM and 11:30 AM, while non-competitive bids must be submitted between 10:30 AM and 11:00 AM. The auction results will be published on the RBI’s official website on the same day. Successful bidders must make payments by February 27, 2025, using cash, bankers’ cheques, payment orders, demand drafts, or cheques payable at the RBI’s Mumbai office before the close of business hours.

The bond tenure will be 14 years, starting from February 27, 2025, with full repayment on February 27, 2039. The interest rate will be determined based on the coupon rate set during the auction. Interest payments will be made semi-annually on August 27 and February 27 each year.

These government bonds will qualify as Statutory Liquidity Ratio (SLR) securities under Section 24 of the Banking Regulation Act, 1949, making them eligible for banks’ investment purposes. The bonds will also be tradable in the secondary market.

Maharashtra Government to Auction ₹1,000 Crore Bonds with 15-Year Maturity

Similarly, the Maharashtra government will issue ₹1,000 crore worth of bonds with a 15-year maturity, under the same terms and conditions as the 14-year bonds. The auction will take place on February 25, 2025, through the RBI’s E-Kuber system. The repayment period will be 15 years, starting from February 27, 2025, with full redemption on February 27, 2040. Interest payments will be made semi-annually.

Maharashtra Government to Auction ₹1,500 Crore Bonds with 12-Year Maturity

Additionally, the state government will auction ₹1,500 crore worth of bonds with a 12-year maturity. The auction and payment procedures will remain the same. The bond tenure will begin on February 27, 2025, and end on February 27, 2037. Interest payments will be made semi-annually.

Maharashtra Government to Auction ₹1,500 Crore Bonds with 13-Year Maturity

The government will also issue ₹1,500 crore worth of bonds with a 13-year maturity. The auction process will be conducted on February 25, 2025, and the bonds will mature on February 27, 2038. Interest payments will be made semi-annually.

These government bonds will be eligible for trading in the secondary market and will qualify as SLR securities under banking regulations.