VIJAYAWADA: Buoyed by the success of Amaravati Bonds, the APCRDA is learnt to have fixed the face value of each bond proposed to be issued for public and retail investors at Rs 1,000. While the CRDA raised Rs 2,000 crore by issuing the bonds to institutional investors, it is set to mobilise a maximum of Rs 500 crore this time.
According to officials, the authority is mulling issuing the bonds with multiple tenure and interest options. After the issuance of Amaravati Bonds 2018, we propose to raise funds for capital construction through public issue. Not more than `500 crore is to be raised in either a single tranche or multiple tranches.
The tenure of bonds may be from three years to 15 years, depending on the option. The coupon rate and other modalities will be decided shortly, a senior official from the APCRDA’s strategy wing told TNIE.
Even though the APCRDA initially explored the option of issuing bonds with a face value between Rs 100 and Rs 1,000, it is learnt to have finalised Rs 1,000 for the issue. However, a final call on the face value will be taken shortly, the official added. To finalise the issue’s other aspects, including requisite compliances with the Securities and Exchange Board of India (SEBI), the authority is in the process of engaging lead managers.
“We are proposing to appoint one to three merchant bankers to form a lead manager. We have floated a Request For Quotation (RFQ) to identify the lead manager, who will help us with all the pre-issue, issue and post-issue activities. We expect to identify the lead manager by mid-October,” the official said, adding that the bonds will be ready for issue by November.
On anvil
CRDA to raise Rs 500 crore through public bonds
Tenure to be between 3-15 years
Floats RFQ to identify lead manager