AAA-rated government bonds in India stand out as a secure investment choice, offering both safety and steady returns. These bonds carry a low risk of default, making them a trusted option for conservative investors. With their strong credit ratings, they provide a reliable income stream while protecting your capital. To learn more about these bonds, scroll through this blog.
What Are AAA-Rated Government Bonds?
AAA-rated government bonds are debt securities issued by the Indian government or state governments. These bonds are regarded as the most secure investment option, as they are supported by the government’s financial trustworthiness and stability.
Governments issue bonds in two main types: revenue bonds and general obligation bonds. Revenue bonds are repaid through income from specific services or activities, such as public transportation, tolls or fees. On the other hand, general obligation bonds rely on the overall credit strength of the issuer for repayment.
List of AAA-Rated Government Bonds in India
Explore our comprehensive List of AAA-Rated Government Bonds in India, showcasing top-rated bonds offering maximum safety and reliability. Ideal for secure and stable investment options!
Here is a list of the best government bonds to invest in India that have a rating of AAA:
9.65% Power Grid Corporation of India Limited – AAA Rated (INE752E07LL1)
- Returns: High
- Face Value: ₹10,00,000
- Coupon Rate: 9.65%
- Issue Size: ₹166.6 crore
- Frequency of Payment: Annually
Power Grid Corporation of India Limited, a power transmission company, issued bonds with ISIN INE752E07LL1 on February 28, 2014. The interest earned on these bonds is taxable.
The bond is described as 9.65% secured non-convertible cumulative redeemable taxable power grid bonds XLV-ISSUE 2013-14. has a maturity date of February 28, 2026. The bonds were issued via private placement and have a simple coupon structure with full redemption at maturity. These bonds were listed on the NSE on March 14, 2014, and on the BSE on September 4, 2014. CRISIL Ratings Limited assigned an AAA rating to the bonds on February 12, 2014.
9.35% NTPC Limited – AAA Rated (INE733E07IT0)
- Returns: High
- Face Value: ₹1,00,000
- Coupon Rate: 9.35%
- Issue Size: ₹5 crore
- Frequency of Payment: Annually
Formerly known as National Thermal Power Corporation Limited (NTPC) is a company in the electric utilities sector that issued a bond with ISIN code INE733E07IT0 on July 20, 2012. The returns from this bond are taxable, meaning investors must pay the relevant taxes on the interest earned.
The bond is described as a 9.3473% secured non-cumulative, non-convertible redeemable taxable debenture with a full redemption feature, issued under Series-XLVI -STRPP-H. Its maturity date is July 20, 2025. This instrument was offered through private placement and it is listed on both the BSE and NSE exchanges as of August 21, 2012. CRISIL assigned an AAA rating to the bond on June 3, 2013.
9.18% Konkan Railway Corporation Limited – AAA Rated (INE139F07055)
- Returns: High
- Face Value: ₹10,00,000
- Coupon Rate: 9.18%
- Issue Size: ₹110 crore
- Frequency of Payment: Semi-annually
Konkan Railway Corporation Limited is a utility company that issued a bond with ISIN INE139F07055 on August 11, 2014. The bond has a face value of ₹10,00,000 and offers a coupon rate of 9.18%, with interest paid semi-annually. Returns from this bond are taxable and investors must pay the applicable tax on the interest earned.
The bond is described as a 9.18% secured non-convertible bond, with a maturity date of August 11, 2024. Issued through private placement, the bond has a simple coupon structure and offers full redemption at maturity. It was listed on both the NSE and BSE stock exchanges on August 14, 2014. CARE Ratings Limited assigned an AAA(CE) rating to the bond on August 11, 2014.
8.50% NHPC Limited – AAA Rated (INE848E07864)
- Returns: High
- Face Value: ₹1,00,000
- Coupon Rate: 8.50%
- Issue Size: ₹122.91 crore
- Frequency of Payment: Annually
National Hydroelectric Power Corporation Ltd. or NHPC Limited, an electric utilities company, issued a bond with ISIN code INE848E07864 on July 14, 2015. Returns from this bond are taxable, meaning investors have to pay taxes on the interest they earn.
The bond is described as an 8.50% secured redeemable non-convertible taxable debenture, with a maturity date of July 14, 2026. Issued through private placement, the bond features a simple coupon type and full redemption option. It is listed on both the NSE and BSE stock exchanges as of July 20, 2015. India Ratings and Research Pvt. Ltd. assigned an AAA rating to the bond on July 3, 2015.
7.39% National Highways Authority of India – AAA Rated (INE906B07EL4)
- Returns: Medium
- Face Value: ₹10,00,000
- Coupon Rate: 7.39%
- Issue Size: 1,373 crore
- Frequency of Payment: Annually
The National Highways Authority of India, a toll bridge operator, issued a bond with ISIN INE906B07EL4 on February 18, 2016. Returns on this bond are exempt from tax under Section 10(15)(iv)(h) of the Income Tax Act.
The bond is described as 7.39% secured redeemable tax-free non-convertible bonds in the nature of debentures, series IIIB, with a maturity date of February 18, 2031. Issued through private placement, it features a simple coupon structure and provides full redemption at maturity. The bond was listed on the BSE on March 8, 2016, and India Ratings and Research Pvt. Ltd assigned it an AAA rating on April 1, 2020.
6.80% Nuclear Power Corporation of India Limited – AAA Rated (INE206D08477)
- Returns: Medium
- Face Value: ₹10,00,000
- Coupon Rate: 6.80%
- Issue Size: 1,800 crore
- Frequency of Payment: Annually
Nuclear Power Corporation of India Limited, an energy sector company, issued a debenture with ISIN INE206D08477 on March 23, 2021. The returns from this investment are taxable, requiring investors to pay applicable taxes on the income earned.
Described as 6.80% unsecured rated listed redeemable senior non-convertible bonds in the nature of debenture, series XXXV, the instrument matures on March 21, 2031. Issued via private placement, it features a simple coupon structure and offers full redemption upon maturity. The debenture was listed on the NSE on March 25, 2021, and India Ratings and Research Pvt. Ltd assigned it an AAA rating on March 4, 2021.
5% Indian Railway Finance Corporation Limited – AAA Rated (INE053F07CZ0)
- Returns: Medium
- Face Value: ₹10,000
- Coupon Rate: 5%
- Issue Size: 36.138 crore
- Frequency of Payment: Annually
Indian Railway Finance Corporation Limited issued a bond with ISIN code INE053F07CZ0 on June 30, 2021. Returns from this bond are taxable, requiring investors to pay applicable taxes on the interest earned.
The bond is described as a 5% secured rated, unlisted redeemable non-convertible 54EC capital gain bond, Series V, with a maturity date of June 30, 2026. The bond was issued through private placement and offers a simple coupon type with a full redemption option. It is not listed on any stock exchange. CRISIL Ratings Limited assigned an AAA rating to the bond on May 17, 2021.
Final Word:
For those looking to invest their money and earn a stable, low-risk asset, AAA-rated government bonds in India present an ideal opportunity to earn consistent returns while ensuring the safety of their capital. These bonds cater especially to conservative investors who prioritise financial security over high-risk ventures. However, before investing, it is crucial to understand the bond’s maturity period, coupon rate, tax implications and associated risks.
