GHMC to raise another Rs 800 Cr bonds in next financial year
Written by : SMTV24x7 | Fri, Feb 23, 2018, 03:11 PM
Hyderabad, Feb 23: The Greater Hyderabad Municipal Corporation (GHMC) is planning to raise another Rs 800 crore through the bond market in the next financial year.
Addressing at the listing ceremony of Municipal Bonds of GHMC here on Thursday, Corporation Commissioner Janardhan Reddy said on February 14, 2018, the corporation has finally entered the bond market through the EBP system of BSE Ltd for Rs 200 crore bond issue with tenure of 10-years and Credit Rating of AA Stable from CARE and India Ratings.
The issue got an overwhelming response from the capital market investors, securing over 200 percent subscription, but GHMC decided to retain only Rs 200 crores at a coupon rate of 8.90 percent, the Commissioner said the fund raised for a Strategic Road Development (SRD) scheme.
The funds raised through the bond issue will be utilized to build roads, flyovers and other infrastructure aimed at reducing travel time and traffic congestion in the city, he said.