Tamil Nadu

Tamil Nadu raises ₹2,000 crore from bond sales

On Tuesday, the State sold bonds of ₹1,000 crore each, with tenures of 4 years and 10 years via an auction conducted by Reserve Bank of India. File photo

On Tuesday, the State sold bonds of ₹1,000 crore each, with tenures of 4 years and 10 years via an auction conducted by Reserve Bank of India. File photo  

For 4-year and 10-year tenures, the interest rates were 5.54% and 6.67%

Tamil Nadu on Tuesday raised ₹2,000 crore through issue of bonds due to the poor revenue collection and increasing expenditure on account of COVID-19.

Last month alone the State had raised ₹8,000 crore through issue of bonds of various tenures with interest ranging from 5.60-7.75%.

On Tuesday, the State sold bonds of ₹1,000 crore each, with tenures of 4 years and 10 years via an auction conducted by Reserve Bank of India.

The 4-year bond attracted an interest rate of 5.54% and the 10-year bond yield was 6.67%.

The State has so far utilised 35% of its 9-month borrowing limit for this financial year.

The Centre has allowed States to raise ₹3.2 lakh crore in net market borrowings during the first nine months of the current financial year, as a result of which Tamil Nadu will be able to borrow ₹28,880 crore.

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Printable version | May 28, 2020 6:17:16 PM | https://www.thehindu.com/news/national/tamil-nadu/tamil-nadu-raises-2000-crore-from-bond-sales/article31511029.ece

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