TEAM HERALD
PANJIM: The state government is selling Goa State Government Stock (Securities) of 10-year tenure of an aggregate amount of Rs 150 crore.
In an announcement on Friday, the Goa Government has offered to sell Goa State Government Stock (Securities) of 10-year tenure of an aggregate amount of Rs 150 crore (Nominal). Government Stock will be sold through the RBI, Mumbai Office (PDO) Fort, Mumbai by auction at a coupon rate to be determined by the Reserve Bank of India at the yield based auction under multiple price format.
The borrowing is part of the Government of India’s approved planned borrowing for the State for 2013-14. This is the second borrowing by the government this financial year with the earlier borrowing towards the end of June being Rs 200 crore. With this sale of stock, this year’s borrowing will go up to Rs 350 crore.
The auction will be conducted by the Reserve Bank of India at its Mumbai Office, Fort, Mumbai on August 27, 2013. Those wishing to bids for the auction should submit the bids in electronic format, on the Reserve Bank of India Core Banking Solution (E-Kuber) system of August 27, 2013.
The competitive bids shall be submitted electronically on the RBI Core Banking Solution (E-Kuber) system between 10.30 am and 12 pm and the non-competitive bids shall be submitted electronically on the RBI Core Banking Solution (E-Kuber) system between 10.30 am and 11.30 am.
The auction results will be displayed by the RBI website on the same day. The payment by successful bidders will be on August 28, 2013, before close of banking hours by means of cash, banker’s cheque/pay order, demand draft payable at RBI, Mumbai (Fort).
The loan will be repaid at par on August 28, 2023. The cut-off yield determined at the auction will be the coupon rate percent annum on the Stock sold at the auction. The interest will be paid every half yearly on February 28 and August 28.
The auction is also open to eligible individuals and institutions on non competitive basis to maximum limits of 10% of the notified amount.
The Goa State Government Stock will be issued at a minimum amount of Rs 10,000 (face value) and in multiples thereof.
Last financial year the state government sold stock to the tune of Rs 950 crore in as many as five borrowings. Incidentally Rs 950 crore is more or less the amount of revenue the state government claims to have lost out on due to stoppage of mining imposed by the Supreme Court last year.
