Hyderabad Civic Body Lists Bonds On BSE
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