Punjab to float Rs. 200 crore loan

CHANDIGARH: The Punjab government in consultation with Reserve Bank of India(RBI) Friday floated  Rs. 200 crore (nominal) loan to finance part of Capital Expenditure of Plan Schemes and other development schemes under execution.

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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. 200 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 which would be conducted by them in its Mumbai office on September 21,2010. The application form duly filled in with the Competitive  bids should be submitted in electronic format, on the Negotiated Dealing System (NDS)to the RBI, Mumbai on September 21,2010 between 10.30 A.M to 12.30 PM while the non-competitive bids should be submitted electronically on NDS between 10.30 AM to 11.30 PM on the same day. 

Result of auction would be displayed on the same day and successful bidders would make payment on September 22, 2010

The spokesman added that this 10 year tenure loan would be repaid at par on on September 22, 2020. He said that interest will be paid every half yearly on March 22 and September 22 and cut off yield determined at the auction would be the coupon rate percent per annum of the stock sold at the auction.