New Delhi, Sep 27 (SocialNews.XYZ) 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.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz