Bhubaneswar: The Odisha Government will raise Rs 1,000 crore through State Development Loans (SDLs), and the Reserve Bank of India (RBI) is scheduled to hold an auction on October 13.

The borrowing will be undertaken in two tranches of Rs 500 crore each by reissuing two existing securities—Odisha SDL 2037, carrying a yield of 7.12%, and Odisha SDL 2040, offering a yield of 7.24%, according to RBI notifications.

Odisha is among 13 states planning to raise a combined Rs 31,200 crore through the market as part of their borrowing programmes.

The auction will be conducted through the RBI's E-Kuber platform. Both institutional investors and retail investors will be eligible to participate in the bidding process. Individual investors can place bids through the RBI Retail Direct portal, with the minimum investment set at Rs 10,000.

The auction results will be announced on the same day, while successful bidders will be required to make payments by October 14.

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The securities will carry semi-annual coupon payments, payable on April 14 and October 14 every year. The borrowing and issuance process will be governed by the Government Securities Act, 2006, and the Government Securities Regulations, 2007.

State Development Loans are debt instruments issued by state governments to raise funds from the market. They are generally considered relatively low-credit-risk investments because they carry the backing of the respective state government.

However, investors remain exposed to interest-rate and market-price risks, particularly if they sell the securities before maturity.