Govt to sell 50-year bonds for first time

New Delhi, Sep 27 (IANS): The Central government for the first time will sell 50-year bonds to meet the demand for longer dated securities from the country's life insurance and pension fund segments.

This comes as a major development in the country’s financial sector as a fast-growing middle-class looks for long-term financial security and retirement planning through such investments.

The new 50-year bonds, revealed in the borrowing plan released by the Reserve Bank of India on Tuesday, will add to the 30-year and 40-year tenor bonds that are being offered currently.

“Investor demand has been strong, supported by the expansion of the formal sector, with households allocating a higher share of financial savings in life insurance, pensions and provident funds,” Gaura Sen Gupta, economist at IDFC FIRST Bank wrote in a note.

The government plans to sell Rs 30,000 crore worth of 50-year bonds in the October to February period.

The Centre is sticking to its plan of borrowing Rs 6.55 lakh crore for the second half of the current financial year -- or 42.45 per cent of its gross market borrowing of Rs 15.43 lakh crore for the full year.


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Comment on this article

  • Krishna Dasa, Udupi,.

    Thu, Sep 28 2023

    After 50-year Rs 30,000 crore worth bonds real value will go down and the money will become worthless and majority of the investors will be dead in 50 years or too old to handle money matters or India may divide in to many smaller country like Bharat and India. Who knows what will happen. Don't invest Spend the money now (Blow up the money by buying & selling like Americans do) Spending (grater movement of money between people) money will help the economy grow.

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