Punjab to float Rs. 800.000 crore loan

CHANDIGARH: The Punjab government in consultation with Reserve Bank of India(RBI) Friday floated Rs. 800.000 crore (nominal) loan to finance part of Capital Expenditure of Plan Schemes and other development schemes under execution.

        

According to an official spokesman  the State government today notified  the sale of Punjab Government  Stock (Securities) of 10 year tenure for a aggregate amount of Rs. 800.000 crore (Nominal). The spokesman said that consent of Central government has already been obtained to the floatation of this loan.

          

The spokesman said that the government stock would be sold through RBI Mumbai by auction that would be conducted by them in his Mumbai office on September 7,2010. 

The application form duly filled in with the Competitive and non- competitive bids should be submitted in electronic format, on the Negotiated Dealing System (NDS)to the RBI, Mumbai on September 7, 2010 by 12.30 P.M and 11.30 AM respectively. Result of auction would be displayed on September 8, 2010 and successful bidders would make payment on September 8, 2010.

           

The spokesman added that this 10 year tenure loan would be repaid at par on September 8, 2020. He said that interest will be paid every half yearly on March 08 and September 08 and cut off yield determined at the auction would be the coupon rate percent per annum of the stock sold at the auction.