Hyderabad Civic Body Lists Bonds On BSE

Hyderabad Civic Body Lists Bonds On BSE

Hyderabad Civic Body Lists Bonds On BSE
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The Greater Hyderabad Municipal Corporation (GHMC) has listed its municipal bonds on stock exchange BSE's debt platform. Earlier, the civic authority had raised Rs 200 crore by selling 10-year bonds. The bonds, which were announced in December last year, have been oversubscribed two times at a coupon of 8.9 per cent.

These funds would be invested in Hyderabad's strategic road project being constructed at a cost of Rs 3,518 crore.

According to a media report, the GHMC plans to raise Rs 1,000 crore from selling bonds in tranches. 

"Hyderabad is a city of 10 million with a 1,000 km road network. We need to improve the traffic junctions, make traffic hassle-free by reducing travelling time," municipal commissioner B Janardhan Reddy said in a PTI report. 

The bonds were announced by Housing Minister Hardeep Singh Puri in December and said it was not a "big deal" to tap funds through bonds, provided the city was managed well and had a good credit rating.

These bonds have been rated 'AA' or stable by credit rating agencies and are being managed by SBI Caps. 

With inputs from Housing News

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