Maha will issue bond sale of `2000cr under State Development Loans for 10 years

MUMBAI: Maharashtra government will issue bonds (re-issue) worth Rs 2000 crore for 10-year-term shall be subject to the terms and conditions mentioned in the government’s notification of sale. The amount of the loan will be utilised for development programmes of the government. Government bonds will be sold on behalf of the Reserve Bank of India, Fort Branch as per the revised general notification of June 12 through auction method. Ten per cent of bonds will be issued to eligible individuals and institutional investors through noncompetitive auction method. However, one investor will be issued bonds costing maximum one per cent of the total notified amount. The auction will be held at RBI, Fort office on July 3. Bids for this auction can be presented on July 3 through computerised system RBI Coar Banking solution (e-kuber) system. Competitive bids will be accepted from 10.30 am to 12 o'clock. Non competitive bids will be accepted from 10.30 am to 11.30 am. Results of the bids will be declared by RBI the same date. Successful bidders will be required to deposit the cash or bankers cheques / Pay orders /demand drafts / cheque issued in favour of R B I payable at Fort Branch in banking hours on July 4. These bonds will be for 10 years term beginning from July 4. The net value of the bonds will be refunded on July 4, 2028. The rate of the interest payable will be equal to per year per hundred coupon rate on the amount of bond sale. The interest will be paid half yearly on January 4 and July 4 every year. The investment of banks in the government bonds will be as per rules under regulation 1949 section 24. These bonds will be permissible for re-sale purchase as per Finance Department notification of June 29.