
Reserve Bank of India has successfully raised ₹10,000 crore from the issuance of 50-year bonds, setting a coupon rate of 7.46%. The decision to issue these long-term bonds comes as part of the RBI’s strategy to manage the country’s debt profile and meet the government’s borrowing requirements. Long-term investors such as pension funds and insurance companies are expected to show interest in the 50-year bond due to its attractive coupon rate.
The coupon rate of 7.46% is higher than the current yield on 10-year government securities, making it an attractive investment for those looking for long-term, stable returns. The raised amount of ₹10,000 crore will be used to fund various government initiatives and manage the fiscal deficit.
The success of this bond issuance could pave the way for more such long-term bond issuances in the future, contributing to the overall development and maturity of the Indian bond market. RBI’s decision to set a higher coupon rate for these 50-year bonds indicates its commitment to attracting long-term investment and ensuring the success of this and future bond issuances.