Mumbai (Maharashtra) [India], December 2 (ANI): In a first for Uttar Pradesh, Lucknow Municipal Corporation bonds worth Rs 200 cr were listed on Bombay Stock Exchange (BSE) in Mumbai on Wednesday with Chief Minister Yogi Adityanath ringing the bell to mark the listing.
Adityanath stated that it is a matter of pride for UP that the Lucknow Municipal Corporation has raised Rs 200 crore through its bonds, which got listed on the BSE today. "It is the trust of the investors, which UP has earned during the last three-and-a-half years. It will augment our effort to improve infrastructure in urban areas. It shows the improvement in the industrial climate of the state and the trust the investors have reposed in the machinery."
According to the Chief Minister's Office, the Lucknow Municipal Corporation has become the first civic body in north India to issue bonds, even as the process of issuing municipal bonds by civic bodies started in the country in 1997.
With municipal bonds generally being used for financing public projects, the state capital is now one of the eight cities in India to fund the AMRUT and Smart Cities Mission, as per government data.
The bond has received 21 bids and has been subscribed by 4.5 times. The issue was opened for subscription on November 13 and the corporation received bids within 60 seconds of opening.
Ashish Kumar Chauhan, BSE Managing Director (MD) and Chief Executive Officer (CEO), congratulated the Lucknow Municipal Corporation for successfully raising Rs 200 crore by issuing municipal bonds on the BSE platform. "The fact that the order book was filled more than double in a matter of a few minutes establishes Lucknow Municipal Corporation as a credible entity in the Indian bond market. BSE firmly believes that the Indian bond market has the potential for substantial growth," he said, adding the platform enables seamless subscription and has helped to bring transparency and efficiency in price discovery of debt securities.
A K Mittal, MD and CEO of A K Capital -- a leading merchant banker in the municipal bond space in terms of volumes -- also congratulated the Lucknow Municipal Corporation for raising Rs 200 crore at historically low rates. "Lucknow Municipal Corporation bonds are backed by strong structured payment mechanism making it is a secured investment with an attractive return for investors. The Indian municipal bond market is at a very nascent stage compared to the US but given the rapid pace of urbanisation, it is going to play a pivotal role in shaping the urban infrastructure sector in the country." (ANI)