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 an aggregate amount of Rs 500 crore (Nominal).
The spokesman said that consent of Central government has already been obtained to the flotation 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 September 25, 2008.
The spokesman added that this 10-year tenure loan would be repaid at par on September 26, 2018. He said that interest will be paid every half yearly on March 26 and September 26 and cut off yield determined at the auction would be the at coupon rate per cent per annum of the stock sold at the auction.