Ghaziabad Municipal Corporation, a civic body in Uttar Pradesh, has raised Rs 150 crore through the issuance of green bonds and the proceeds will be used for the tertiary water treatment plant for the benefit of industries in Ghaziabad. The company also received an incentive of Rs 19.5 crore from the Union government to raise funds through municipal bonds. The bonds were oversubscribed with offers worth over Rs 401 crore, according to the company.
“The raised capital will not only impose financial discipline, but will also pave the way for the company for greater fundraising, if necessary, in the future. We have seen the interest of at least 40 offers attracting a total subscription of Rs 401 crore. minutes to the date of the offer and that too with a very competitive 8.10 percent coupon rate, which is one of the lowest municipal bonds in India, ”said Mahender Singh Tawar, Municipal Commissioner of GMC .
He noted that it was also the very first green bond ever issued by a municipal company in the country.
On the occasion of the bond listing, BSE Managing Director and CEO Ashishkumar Chauhan said that up to Rs 18.53 lakh crore was raised on the exchange through debt and equity. clean, even during the coronavirus period. He said the markets in India are getting much bigger and the stock exchange will make it easier for other such companies in the country to raise capital and also get listed. “It is pleasant to note that Ghaziabad became the first municipal company in India to issue a green bond for an environmentally sustainable wastewater reuse project at the most competitive 8.1% coupon rate with oversubscription on the BSE platform. . investor confidence. I was also told that even foreign institutional investors are now looking at this platform and the financing of Indian municipalities with eagerness, ”said Chauhan.
Union Minister of State for Road Transport and Highways VK Singh said touching the bond market to raise funds by municipal bodies will change the way they operate and lead to a complete transformation into terms of governance.
Singh is an MP from Ghaziabad.
The investment bankers on the bond issue were AK Capital Services Ltd and
The Municipal Company of Ghaziabad (GMC) has entered into an agreement with the Association of Industries of Sahibabad with the aim of achieving various goals and objectives relating to water supply.
The capital raised is proposed to partially finance the tertiary water treatment and treatment plant, the cost of which is estimated at around Rs 239.93 crore.