The Finance Ministry on Wednesday announced the sale of Government bonds worth Rs 28,000 crore in three lots through auctions to be conducted by the Reserve Bank of India in Mumbai on Friday (July 5).

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The first lot comprises "7.02 per cent Government Security 2027" for a notified amount of Rs 6,000 crore.

The second set of "7.23 per cent Government Security 2039" are valued at Rs 12,000 crore while the third lot of "7.30 per cent Government Security 2053" are for a notified amount of Rs 10,000 crore.

The three lots will be sold through a price-based auction using the multiple price method.

The government will have the option to retain additional subscriptions up to Rs 2,000 crore against each of the three securities.

Up to 5 per cent of the notified amount of the sale of the securities will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on July 5.

The non-competitive bids should be submitted between 10.30 a.m. and 11 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m.

The result of the auctions will be announced on July 5, 2024 (Friday) and payment by successful bidders will be on June 8 (Monday).

The Securities will be eligible for "When Issued" trading in accordance with the RBI guidelines.