Punjab to float 300 crore loan

The Punjab government in consultation with the Reserve Bank of India (RBI) has floated Rs 300 crore (nominal) loan to finance part of the Capital Expenditure of Plan Schemes and other development schemes under execution.

According to an official spokesman, the state government has notified the sale of Punjab government Stock (Securities) of 10 year tenure for a aggregate amount of Rs 300 crore (nominal). The spokesman added consent of Central government had already been obtained to the floatation of this loan. The government stock would be sold through RBI Mumbai by auction that would be conducted in RBI office at Mumbai on October 6, 2009.

The spokesman added that this 10 year tenure loan would be repaid at par on October 7, 2019. He said that interest will be paid every half yearly on April 7 and October 7 and cut off yield determined at the auction would be the coupon rate per cent per annum of the stock sold at the auction.