HYDERABAD: The GHMC will raise Rs 200 crore as second tranche from the Rs 1,000 crore allocated to be raised through municipal bonds for the ongoing Strategic Road Development Programme, a high priority project for Greater Hyderabad. The project comprises of Skyways (100 km), Major Corridors (166 km), Major Roads (348 km), other roads (1,400 km) and as many as 54 Grade Separators and Flyovers.
The first tranche of `200 crore was raised through electronic bidding held in Mumbai on February 14. It received overwhelming response with a subscription rate of 200 per cent. The bonds were placed at a coupon rate of 8.9 per cent for a tenure of 10 years in the form of private placement bonds. GHMC is the second municipal corporation after Pune to float municipal bonds in the recent past.
A proposal has been submitted to the GHMC standing committee for the second tranche of `200 crore, which is likely to be approved in the meeting next week. As per SEBI guidelines, all municipal bonds have to be listed either on Bombay Stock Exchange or National Stock Exchange. GHMC has opted for BSE Bond EBP platform.
The GHMC has made a tripartite agreement with the National Securities Depository Ltd, the Central Depositiory Services Limited and Registrar. These agencies will help with debt securities, dematerialisation, administration of debenture and bond warrant.