Mumbai, May 28: The state governments will raise additional funds aggregating Rs 7,000 crore on June 12 on account of debt swap scheme, RBI said today. The coupon rate and other details would be notified later, a Reserve Bank of India release said adding that this would be the first tranche of state governments' borrowing programme under the scheme during the current fiscal.

The central bank would also conduct an auction of two Government of India securities aggregating Rs 9,000 crore on June three.

The two stocks are 6.85 per cent GOI, 2012, of Rs 6,000 crore and a 25 year stock of Rs 3,000 crore notified amount, it said.

The auction of the first stock would be conducted using the price based using multiple price method while for the other it would be yield based, it added.

Upto five per cent of the notified amount of sale of both stocks would be allotted to eligible individuals and institutions as per the scheme of non-competitive bidding facility in the auction of government securities, it said.

Bureau Report