The Maharashtra government plans to issue bonds worth ₹2,000 crore with an 18-year maturity under newly revised terms. According to a press release from the Finance Department, led by Secretary Shaila A, the funds generated from this borrowing will be earmarked for various development initiatives.
In this updated competitive bidding process, 10% of the total offered bond amount will be set aside for qualified individual and institutional investors. However, no single investor can acquire more than 1% of the overall notified amount.
The Reserve Bank of India (RBI) will oversee the auction at its Mumbai office on January 7, 2025. Interested parties must submit their bids through the RBI’s electronic platform, known as Core Banking Solution (e-Kuber), on the same day.
Bidders must enter competitive bids via the e-Kuber system between 10:30 a.m. and 11:30 a.m., while non-competitive bids should be submitted earlier, specifically between 10:30 a.m. and 11:00 a.m. The results of the auction will be disclosed on the RBI’s website later that day. Those who are successful in their bids must make payment by January 8, 2025, using cash, bankers’ cheques, demand drafts, or cheques made payable to their RBI account in Mumbai, before the end of the banking day.
The bonds will have a lifespan of 18 years, starting from January 8, 2025, with complete repayment due by January 8, 2043. The annual interest rate will be provided as an annual coupon rate, with interest payments occurring semi-annually on January 8 and July 8 each year, calculated from the date of issuance.
Banks investing in these government bonds will be allowed to count them towards their statutory liquidity ratio (SLR) obligations under Section 24 of the Banking Regulation Act of 1949. Additionally, these bonds will be eligible for resale and repurchase transactions as stated by the Finance Department.
