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.
