The Reserve Bank of India (RBI) on Tuesday said that eight states and union territories raised a total of Rs 12,800 crore through the latest state government securities (SGS) auction. The entire notified amount was accepted, with cut-off yields largely in the 6.6%-7.3% range, indicating steady borrowing costs despite an active issuance calendar.
According to the auction results, Bihar and Jammu & Kashmir raised funds at 7.31% for 20-year tenors, while Gujarat secured Rs 1,000 crore at a 7.07% yield for a 9-year bond. Odisha raised Rs 1,000 crore through two tranches, an 8-year bond at 7.08% and a 24-year paper at 7.28%.
Tamil Nadu borrowed Rs 1,000 crore via a 4-year security at 6.58%, marking one of the lowest yields in the auction. Telangana mobilised Rs 1,000 crore through a 26-year bond at 7.30%, while Uttar Pradesh raised Rs 2,000 crore at 7.12% for an 8-year tenor.
Maharashtra conducted four re-issues of its earlier papers, together amounting to Rs 5,000 crore, across maturities extending to 2055. The cut-off prices ranged between 98.31 and 100.74, translating into yields of 7.17% to 7.31%.