Government of Maharashtra to Sell ₹1,000 Crore, 14-Year Bonds

Mumbai, Aug 14 – The Government of Maharashtra will sell the “7.08% Government of Maharashtra Bonds, 2039” worth ₹1,000 crore, with a maturity period of 14 years (issued on June 25, 2025), subject to the terms and conditions specified in the government’s revised notification. The funds raised through this borrowing will be used to finance the state’s development works, according to a press release issued by Finance Department Secretary Shaila A.

Under the revised non-competitive bidding method, 10% of the total notified amount of government bonds will be allocated to eligible individual and institutional investors. However, a single 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 August 19, 2025. Bids must be submitted on the same day through RBI’s Core Banking Solution (e-Kuber) system. Competitive bids must be submitted between 10:30 a.m. and 11:30 a.m., while non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m. The auction results will be published on the RBI website the same day. Successful bidders must make payment on August 20, 2025, either in cash, banker’s cheque/payment order, demand draft, or by cheque payable at their RBI, Mumbai account, before the close of banking hours.

The bonds will have a tenure of 14 years, starting from June 25, 2025, and will be fully repaid at face value on June 25, 2039. The interest rate will be 7.08% per annum, paid semi-annually on December 25 and June 25 each year from the date of issue.

Investments by banks in these government bonds will be considered eligible for Statutory Liquidity Ratio (SLR) requirements under Section 24 of the Banking Regulation Act, 1949. These bonds will also be tradable in the secondary market, the Finance Department added.