Punjab floats Rs200 crore loan to finance development schemes

The Punjab government in consultation with Reserve Bank of India (RBI) today floated Rs200 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 Rs200 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 October 29, 2009. The application form duly filled in with the bids should be submitted to the RBI, Mumbai on October 29, 2009.  Result of auction would be displayed on October 30 and successful bidders would make payment on October 30, 2009.

The spokesman added that this 10-year tenure loan would be repaid at par on October 30, 2019. He said that interest would be paid every half yearly on April 30 and October 30 and cut off yield determined at the auction would be the coupon rate percent per annum of the stock sold at the auction.