Chandigarh, October 21: The Punjab government in consultation with Reserve Bank of India(RBI) today floated Rs. 500 crore 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. 500 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 22, 2008. The application form duly filled in with the bids should be submitted to the RBI, Mumbai on October 22 by 12.30 P.M. Result of auction would be displayed on October 23 and successful bidders would make payment on October 23, 2008.
The spokesman added that this 10 year tenure loan would be repaid at par on October 23, 2018. He said that interest will be paid every half yearly on April 23 and October 23 and cut off yield determined at the auction would be the coupon rate percent per annum of the stock sold at the auction.