The auction of 10-year state development loans of seven state governments was oversubscribed, on improved liquidity in the system.

Uttar Pradesh raised the highest amount of Rs 16.15 billion via this auction, where the cut-off yield was fixed at 8.45%. Tamil Nadu raised Rs 5 billion with a cut-off yield of 8.19%. The state government of Arunachal Pradesh raised only Rs 470 million (8.10%). Andhra Pradesh (Rs 3.75 billion), Assam (Rs 2.12 billion) and Kerala (Rs 3 billion) also participated in this yield-based auction, which will use a multiple price auction method. On an aggregate, an amount of Rs.33.99 billion was raised.

The yield on the paper was within a range of 8.10% - 8.45%, different for different states.

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Posted: 02|22|07 at 8:11 pm. Filed under: News.