Bond Indya 0% ( IN000851C013 ) in INR

Issuer	Indya
Market price	100 % ⇌
Country	India
ISIN code	IN000851C013 ( in INR )
Interest rate	0%
Maturity	22/08/2051
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Minimal amount	100 INR
Total amount	/
Detailed description	India is a vast and diverse South Asian nation with a rich history, diverse cultures, and a rapidly developing economy. Sovereign Debt Profile: An In-Depth Analysis of India's Long-Dated Zero-Coupon Bond (ISIN: IN000851C013) This financial article provides a detailed examination of a specific sovereign bond issued by the Government of India, identified by the ISIN code IN000851C013. The instrument offers a unique perspective into the domestic debt market and the long-term financing strategies employed by one of the world's leading emerging economies. Issuer Profile: The Republic of India As a prominent global economic power, India stands as a significant sovereign issuer in international and domestic capital markets. The Republic of India, the issuer of this bond, is recognized for its robust democratic framework, a rapidly expanding economy, and a vast domestic market that underpins its creditworthiness. The nation's economic policies, including significant investments in infrastructure, digitalization, and social development, are often financed through the issuance of various debt instruments. India's sovereign debt is typically characterized by a large and liquid domestic market, predominantly denominated in Indian Rupees (INR), which helps mitigate foreign exchange risks for the government itself. Its strong foreign exchange reserves and commitment to fiscal prudence further contribute to the perceived stability and reliability of its financial obligations in the eyes of investors. Bond Specifications and Market Analysis The bond under scrutiny is a sovereign obligation with the ISIN IN000851C013. A critical characteristic is its stated interest rate of 0%, which classifies it as a zero-coupon bond. This means the bond does not disburse periodic interest payments; instead, investors typically realize their return from the difference between the bond's purchase price (which for true zero-coupon bonds is at a discount to its face value) and its redemption at its full nominal value at maturity. However, the current market price for this specific bond is listed at 100%, indicating that it is presently trading at its par value. For investors acquiring this bond at its current market price, holding it until its maturity date of August 22, 2051, would imply a 0% yield, assuming it redeems at the same nominal value. This particular characteristic makes it a unique instrument, potentially appealing to specific institutional investors or those with particular balance sheet management requirements, or tax considerations where such non-coupon-paying instruments trading at par may offer distinct advantages. The bond features an exceptionally long maturity date of August 22, 2051, positioning it as an ultra-long-dated instrument. This extended duration reflects the issuer's long-term funding objectives and provides market participants with substantial duration exposure. The currency of denomination is the Indian Rupee (INR), which means that while the issuer is insulated from foreign exchange rate fluctuations, non-domestic investors are subject to currency risk. The minimum purchase size is stipulated at 100 units, indicating the denomination in INR and contributing to its accessibility within the domestic bond market. Despite its zero-coupon structure, the stated "payment frequency: 1" refers to the single principal repayment at the bond's ultimate maturity, which is a standard feature for zero-coupon instruments. Investment Context and Implications The presence and active trading of such a long-dated, zero-coupon bond from the Government of India underscore the sophistication and depth of the nation's domestic capital markets. While a 0% yield for a bond trading at par might deviate from traditional return expectations for many investors, such instruments serve specific strategic purposes within a sovereign debt portfolio, including liability matching for pension funds, long-term asset-liability management, or as a component in complex financial structures. As a direct obligation of the Government of India, this bond is considered among the safest fixed-income instruments within the domestic market, backed by the full faith and credit of the sovereign. It would primarily attract investors with a long-term investment horizon, a mandate for low-risk, long-duration assets, or those seeking exposure to the Indian economy through INR-denominated instruments, particularly if they can capitalize on the unique yield structure or potential for capital appreciation under specific market conditions.