Saturday, August 22, 2009

RBI to sell state loans for $925 mln

MUMBAI (Reuters) – The Reserve Bank of India (RBI) said late on Friday it will introduce a non-competitive bidding facility in conducting an auction of 10-year state development loans on Aug 25.

The auction will be for loans of five state governments, totalling 45 billion rupees ($925 million).

Under the scheme up to 10 percent of the loan on sale will be allotted to eligible individuals and institutions, subject to a maximum of 1 percent of the notified amount for a single bid per stock, RBI said in a statement.

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