Mumbai, : India’s leading stock exchange National Stock Exchange of India Ltd (NSE) has listed muni bond of Bhopal Municipal Corporation (BMC) today. Mr Vikram Limaye, MD & CEO, NSE and Mr Avinash Lavania, Commissioner, BMC rang the opening bell on this occasion.
BMC has raised around Rs 175 Crores on the closing day of the issue on September 25, 2018. The issues was oversubscribed by 1.06 times.
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.
Shri 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 Municipal Corporation for setting strong precedence for similar civic bodies contemplating raising muni bonds issuances.”
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