Govt to borrow ₹6.77 lakh crore in H2 of FY26; ₹10,000 crore via green bonds

The Union government will borrow ₹6.77 lakh crore in the second half of the current financial year 2025-26 through dated securities, including ₹10,000 crore via Sovereign Green Bonds (SGrBs), the Ministry of Finance announced on Friday.

The borrowing will be completed through 22 weekly auctions to be conducted till March 6, 2026. The securities will have maturities ranging from 3 to 50 years.

The share of borrowing across different maturities will be: 3-year (6.6%), 5-year (13.3%), 7-year (8.1%), 10-year (28.4%), 15-year (14.2%), 30-year (9.2%), 40-year (11.1%) and 50-year (9.2%).

The government will retain the right to exercise the greenshoe option to accept up to ₹2,000 crore in additional subscription for each security notified in the auction.

"The Government will continue to carry out switching/buyback of securities to smoothen the redemption profile," the finance ministry said in a statement.

For the third quarter of FY26, weekly borrowing through Treasury Bills is expected to be ₹19,000 crore, comprising ₹7,000 crore in 91-day bills, ₹6,000 crore in 182-day bills and ₹6,000 crore in 364-day bills.

The RBI has fixed the Ways and Means Advances (WMA) limit for the second half of FY26 at ₹50,000 crore, the ministry said.