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Reissued Bonds Surge to Make Up Nearly 66 Percent of State Borrowings in H1 FY27
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News18•09-10-2026, 17:30
Reissued Bonds Surge to Make Up Nearly 66 Percent of State Borrowings in H1 FY27
- •States increasingly relied on reissued bonds, accounting for nearly two-thirds or 65.94 percent of total market borrowings in the first half of FY27.
- •Out of Rs 4.98 lakh crore raised through State Development Loans, Rs 3.28 lakh crore came through reissuances, marking a sharp jump from 8 percent in FY26.
- •The surge aligns with RBI efforts to encourage the Benchmark Issuance Strategy to improve liquidity, transparency, and secondary-market trading volumes.
- •Data from Icra shows 24 states opted to reissue securities in H1 FY27, compared to just four to nine states in previous corresponding periods.
Key Questions Answered
In the first half of FY27, reissued bonds accounted for nearly two-thirds, or 65.94 per cent, of total state market borrowings.
A reissuance involves issuing an existing, previously issued bond series into the market rather than creating a brand-new security with a new maturity date or coupon rate.
States are increasing reissuances amid RBI efforts to improve liquidity, enhance transparency, and adopt the Benchmark Issuance Strategy, which helps consolidate outstanding securities and deepen the secondary market.
