Hyderabad Municipal Body Raises Rs 195 Cr Through Bond Issue
Plan of Hyderabad to become a traffic-free city through strategic roads are well on their way to realisation—at least money would not be a constraint there, it seems.
At a time when many of its peers are grappling with monetary issues, the Greater Hyderabad Municipal Corporation (GHMC) has raised a total of Rs 395 crore in a year through municipal bonds. While the municipal body raised Rs 200 crore in February, it has now raised Rs 195 crore now. The corporation plans to use the proceeds to build a strategic road project worth Rs 3,518 crore.
Of this, the corporation plans to raise Rs 1,000 crore through bonds. The GHMC plans to raise the remaining amount by bond issuance in the current financial year itself.
Using these funds, the body will build skyways, conflict-free corridors and improve travel time within cities by making traffic jams a history.
The AA-rated GHMC bond offers 9.38 per cent interest on 10-year maturity. In February, the coupon rate of the GHMC bonds was 8.90 per cent, maturing in 10 years.
Municipal bonds are debt instruments under which the investor is repaid the fixed amount of principal with interest over a period decided by the municipal body.