Government of Maharashtra to Issue 15-Year Bonds Worth Rs 1,500 Crore

Mumbai : The Government of Maharashtra is set to issue 15-year bonds worth Rs 1,500 crore, carrying an interest rate of 7.27%. These bonds, known as “Government of Maharashtra Bonds 2039,” were issued on August 7, 2024, and will be sold via auction under the terms outlined in the notification dated May 16, 2019. The funds raised from this bond issue will be used for government development programs, according to Shaila A., Secretary of the Finance Department.

Ten percent of the bond amount will be reserved for eligible individual and institutional investors through a non-competitive auction method, with a maximum allocation of one percent of the total notified amount per investor. The Reserve Bank of India (RBI) will conduct the auction at its Mumbai office on August 13, 2024. Bids must be submitted electronically through the RBI’s Core Banking Solution (e-KUBER) system, with competitive bids accepted between 10:30 AM and 11:30 AM, and non-competitive bids between 10:30 AM and 11:00 AM.

The auction results will be announced on the same day on the RBI website. Successful bidders must make payments by August 14, 2024, using cash, banker’s cheque/payment order, demand draft, or a cheque payable to their account at the RBI, Mumbai, before the close of banking hours.

The bond has a 15-year tenure, starting from August 7, 2024, with full repayment due on August 7, 2039. The interest rate is set at 7.27% per annum, with semi-annual payments on February 7 and August 7 each year.

Investments in these government securities by banks will qualify for the Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The Finance Department also confirmed that these bonds will be eligible for resale and purchase.