Greater Hyderabad Municipal Corporation raises Rs 200 crore through municipal bonds
By Express News Service | Published: 15th February 2018 04:41 AM |
HYDERABAD: Greater Hyderabad Municipal Corporation (GHMC) has successfully raised Rs 200 crore through municipal bond issuance undertaken in 2017. The Corporation will be utilising the amount raised from the bond market exclusively for executing the Strategic Road Development Project, which aims to scale up the roads of Hyderabad. The project views to minimise travel time, increase journey speed thereby cutting down on delays and also simultaneously minimising the fuel consumption.
The Corporation received bids of more than two times the bond issue size of Rs 200 crore. Bonds were placed at a coupon rate of 8.90 %. Before issuing the bonds, GHMC undertook the process of securing credit rating from reputed agencies as a proof of its credibility.
The instrument of GHMC was examined by CARE and India Ratings who rated it as AA (stable), as compared to the rating issued last year as AA (negative). This rating accorded is evidence of the administrative structure and financial stability of the Corporation. The unsecured bond issue is backed by structure payment mechanism. This is the second successful municipal bond issuance after Pune Municipal Corporation.