LIC Asks RBI to Introduce 100-Year Bonds

Insurance provider Life Insurance Corporation (LIC) has requested the Reserve Bank of India (RBI) to introduce long-term government bonds, including the 100-year paper, a top official said on March 18.

Siddhartha Mohanty, Managing Director and Chief Executive of LIC said the insurer sells life insurance policies, which needs investments in long-term bonds.

He added that RBI has given a go-ahead for 20-30-year bonds and 40-year bonds as well.

Mohanty told reporters on the sidelines of the GCA25, “I am also expecting 50-year, even 100-year bonds. Our people are discussing this from time to time with RBI, and they are also considering this.”

He noted that many countries issue 100-year bonds in the global market. However, India is yet to introduce such bonds due to low activity in the secondary market and limited demand.

Mohanty reiterated that LIC has been very active in the G-sec (Government Security) investments, while highlighting that the insurer has been subscribing to over a fifth of the issuances.