New Delhi, Sep 27 (IANS): The Central government for the first time will sell 50-year bonds to meet the demand for longer dated securities from the country's life insurance and pension fund segments.

This comes as a major development in the country’s financial sector as a fast-growing middle-class looks for long-term financial security and retirement planning through such investments.

The new 50-year bonds, revealed in the borrowing plan released by the Reserve Bank of India on Tuesday, will add to the 30-year and 40-year tenor bonds that are being offered currently.

“Investor demand has been strong, supported by the expansion of the formal sector, with households allocating a higher share of financial savings in life insurance, pensions and provident funds,” Gaura Sen Gupta, economist at IDFC FIRST Bank wrote in a note.

The government plans to sell Rs 30,000 crore worth of 50-year bonds in the October to February period.

The Centre is sticking to its plan of borrowing Rs 6.55 lakh crore for the second half of the current financial year -- or 42.45 per cent of its gross market borrowing of Rs 15.43 lakh crore for the full year.