Kerala to borrow Rs 400 crore from market

Thiruvananthapuram, Dec 12 (UNI) The Kerala government has decided to borrow Rs 400 crore from the market for financing developmental activities in the state.

According to an official statement here today, the Kerala State Government Stock (Securities) of ten-year tenure for an aggregate amount of Rs 400 crore would be sold through the Reserve Bank of India by auction on December 14.

According to the notification, the loan would be repaid at par on December 15, 2016 and the interest would be paid half yearly-- on June 15 and December 15.

The stock would be issued for a minimum of Rs 10,000 (face value) and in multiples there of. The RBI would sell the stock with a tenure of ten years for an aggragate amount of Rs 1,000 crore with face value of Rs 100 at the auction.

All successful bidders would receive half yearly interest of 12.75 per cent per annum during the tenure of the bonds and nominal value of the stock at maturity.

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