Good response by investors to IMC bond
Indore. Indore Municipal Corporation today created new history as the Rs 170 crore bond issued on NSE's online trading platform received a good response. On the first day itself, proposals of Rs 215 crore were received in which the bond's cut off rate was 9.25 percent. This bond was issued for the implementation of the Prime Minister's ambitious AMRUT scheme. Indore Municipal Corporation will be the third in the country to issue the bond for implementation of the Central government scheme and the first Municipal Corporation to be listed in NSE.
The bond was issued for financial contribution of the corporation for the implementation of Prime Minister’s ambitious AMRUT scheme by the Municipal Corporation team under the direction of Mayor and MLA Malini Lakshman Singh Gaud and Commissioner Ashish Singh under the guidance of Principal Secretary Vivek Agrawal and under the able leadership of Chief Minister Shivraj Singh Chouhan. The bond has received good response from the investors.
It is noteworthy that the Indore Municipal Corporation has been given 'AA' rating by 2 rating agencies, which ensures the payment of regular interest and basic amount. With the release of this bond, the AMRUT scheme can be implemented smoothly by the Municipal Corporation. Upon collecting the amount through bond through the Ministry of Urban Development, Rs. 13 crore incentive will be given on every Rs 100 crore. Accordingly, the burden of the bond on the corporation will be reduced by about 2%.
The Central Government is trying to ensure public participation for the urban development of the country through bonds. At the same time, by taking this step as desired by the Central and State Governments, the Indore Municipal Corporation has once again made a mark of its distinctive working style.
Mayor Gaud and Commissioner Singh told that SPA Capital has been appointed Transaction Advisor to issue this bond. Additional Commissioner Finance Virbhadra Sharma, CA Santosh Muchhal, Vikas Maheshwari, Sumit Gagrani have played an important role in issuing the bond of the Corporation.