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Hyderabad raise Rs 195 crore via Muni bonds for the second time

Greater Hyderabad Municipal Corporation (GHMC) has raised Rs 195 crore by selling municipal bonds for the second time within four months, seeking to utilize the proceeds to meet the funding requirements of the Strategic Road Development Plan (SRDP). The bonds offer 9.38% with a 10-year maturity. The bonds are rated AA by Care and India Ratings, one notch lower than the top grade. SBI Capital market has helped the local body to sell those bonds, which has been subscribed by private banks, provident funds, and non-banking finance companies. The unsecured bond issue is backed by a structured payment mechanism wherein the property tax and fees collected by HMC will be deposited every month in a separate no-lien escrow account, which will be used to service bondholders. The GHMC raised Rs 200 crore in the first tranche in February this year, offering 8.90%.

Read More at The Economic Times News date : 15 Aug 2018, Wednesday

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