Punjab govt floats Rs 500 crore loan

Chandigarh, Sept 19 (UNI) The Punjab government today floated a Rs 500 crore loan to finance part of capital expenditure of plan schemes and other development projects which are under execution.

According to an official spokesman, the state government in consultation with the Reserve Bank of India (RBI) has notified the sale of Punjab Government Stock (Securities) of 10 year tenure for a aggregate amount of Rs 500 crore (nominal).

He said the consent of Central Government has already been obtained to the floatation of this loan.

The government stock would be sold through RBI, Mumbai by auction to be held in Mumbai office on September 25.

The application form duly filled in with the bids should be submitted to the RBI, Mumbai on September 25.

Result of auction would be displayed on the same day and successful bidders would make payment on the following day, the spokesman said.

This 10 year tenure loan would be repaid at par on September 26.

He said interest will be paid every half yearly on March 26 and September 26 and cut-off yield determined at the auction would be the 'coupon rate' per cent per annum of the stock sold at the auction.

UNI HS SBA NS1813