VIJAYAWADA: Andhra Pradesh Capital Region Development Authority (APCRDA) is preparing the ground for the issuance of bonds worth Rs 1,000 crore for the public. The exercise of finalising the face value, interest and other details, expected to conclude shortly, is underway. Speaking to TNIE, Principal Secretary (APCRDA), Ajay Jain, said, “We are in the process of issuing the retail bonds for the public in two tranches of Rs 500 crore each. We expect to release them in the market by the first quarter of this year.”
Sources in the APCRDA explained the authority has already sent a file seeking unconditional government guarantee for the retail bonds, which is being scrutinised by the finance department.“Once we get the finance department’s clearance, we will zero in on a date to issue the bonds. In the meantime, we are finalising the merchant banker and other details such as the face value and interest,” the sources said. Following the clearance from the finance department, the file would be sent to the State Cabinet for final approval.
For the record, the APCRDA had initially examined the possibility of fixing the face value between Rs 100 and Rs 1000, and it preferred the latter. However, the authority officials remained tight-lipped over it. It may be recalled that the authority in August last year had issued Amaravati Bonds -2018 worth Rs 2000 crore for institutional investors and this had received an overwhelming response.
While the APCRDA ventured into the capital market with the issue size of Rs 1300 crore and a greenshoe option of Rs 700 crore, the bonds were oversubscribed 1.53 times. The face value of the 10-year-bond was fixed at Rs 10 lakh with a coupon rate of 10.32 per cent per annum. The total interest the authority will have to pay for raising Rs 2000 crore at the end of 10 years would be Rs 1573 crore.