Lucknow Municipal Corporation garners Rs 200 crore on BSE Bond platform

Lucknow Municipal Corporation (LMC) on Friday raised Rs 200 crore by issuing municipal bonds on private placement basis using BSE BOND platform, the exchange said.

The municipal corporation received 21 bids on BSE BOND platform for Rs 450 crore, which is 4.5 times of the issue size, BSE said in a statement.

The exchange said it is the preferred choice amongst municipal corporations to raise debt as this was the eighth successful municipal bond issuance on the platform.

Out of the total 11 municipal bond issuances totalling to Rs 3,690 crore, Rs 3,175 crore have been raised on BSE BOND platform scaling its market share to 86 per cent, the exchange said.

We are happy with the success of the first bond issue of Lucknow Municipal Corporation which was oversubscribed by 4.5 times. This shows the investor's confidence in the financial discipline of Lucknow Municipal Corporation," said Ajay Kumar Dwivedi, Municipal Commissioner Lucknow.

Ashishkumar Chauhan, Managing Director and Chief Executive Officer of the exchange said that BSE firmly believes that Indian bond market is poised for substantial growth and India can use its domestic savings to fund its infrastructure needs in a substantial manner.

In the current financial year (till Friday), BSE BOND platform has enabled corporate India to raise Rs 2.46 lakh crore by issue of debt capital.