Chandigarh, Sep 17 (UNI) The Punjab government today said in consultation with Reserve Bank of India (RBI), it proposes to float a loan of Rs 1000 crore of ten years tenure.
The auction of the loan would open on September 20.
Disclosing this here, a spokesman of the Department of Finance said that the state government stock would be sold through RBI, Mumbai office, by auction at a coupon rate to be determined by the RBI at the yield auction under multiple price format.
Interest on the loan would be paid half yearly on every March 21 and September 21.
The application form duly filled in with the bids could be submitted to the foresaid RBI office on September 20 and payment by the successful bidders would be on September 21.
He further added that the state government stock would be issued to parties by credit to their Subsidiary General Ledger (SGL) account maintained with RBI. This stock would be issued for a minimum amount of Rs 10,000 ( face value ) and in multiples thereof.