Date:19/08/2004 URL: http://www.thehindubusinessline.com/2004/08/19/stories/2004081902141900.htm

Back AP Govt to float NRI bonds

Our Bureau

Hyderabad , Aug. 18

THE Andhra Pradesh Government will float bonds to raise Rs 2,500 crore to Rs 5,000 crore from Non-Resident Indians (NRIs) in the United States.

Modalities are being worked out by the Government to launch the bonds, Mr C.C. Reddy, Advisor to Government (Foreign Investments and Human Resources Placements), said. "Several analysts including Goldman Sachs are quite confident of selling these bonds without much difficulty," he said.

The proceeds of the issue would be utilised for funding developmental activities in Andhra Pradesh.

Addressing a press conference, he said the Government would approach the Union Government and Reserve Bank of India to facilitate the launch of the bonds.

Besides, the Government was in discussion with a New York-based pension fund operator and two other multi-national companies to invest in the State.

"We are also negotiating a loan of Rs 2,600 crore from a Trust fund abroad," Mr Reddy said.

He said NRIs in the US had established a non-profit organisation called `Build AP (US) Foundation' soon. This foundation would pool up resources for the development of Andhra Pradesh.