India’s leading stock exchange National Stock Exchange of India Ltd (NSE)’s Electronic Book Building platform successfully registered over subscription of muni bond issuance of Bhopal Municipal Corporation (BMC). BMC raised around Rs 175 Crores on the NSE EBP on September 25, 2018, with the issue being oversubscribed 1.85 times and multiple investors contributing towards the issue.
BMC muni bonds are issued at a coupon rate of 9.55 per cent payable semi-annually with a put-call option at the end of seventh year. The bonds have a maturity period of ten years and shall be redeemable in four equal instalments starting from seventh year in case put-call option is not exercised. The funds mobilised will be used for implementation of projects identified under Government’s Atal Mission for Rejuvenation and Urban Transformation (AMRUT) mission. The bonds of Indore Municipal Corporation got listed on NSE on July 5, 2018 in the presence of Shivraj Singh Chouhan, Chief Minister, Madhya Pradesh.
Vivek Agarwal, Principal Secretary, Urban Development and Housing, Government of Madhya Pradesh said. “After success of Indore Muni Bonds, today’s oversubscription of Bhopal Municipal Bond reinforces the belief of investor community in the cities of Madhya Pradesh and our good governance. We hope to raise more bonds for development of urban infrastructure in the state. NSE worked with us as a partner in our fund-raising process to help us successfully achieve our objective.”
Vikram Limaye, MD and CEO, NSE said, “Muni bonds play an important role in building a sustainable source of financing to fund long term infrastructure and social obligations for Municipal Corporations. Muni bonds promote good governance in municipal corporations and will lead the way for self-sustainable communities. We congratulate Madhya Pradesh State Government as well as the Bhopal and Indore Municipal Corporation for setting strong precedence for similar civic bodies contemplating raising muni bonds issuances.”
