The Greater Hyderabad Municipal Corporation on Tuesday raised Rs 100 crore through an issue of municipal bonds as part its Rs 300 crore fund raising plan.
The municipal body looks to raise another Rs 200 crore through the bonds in the next two months, according to a release.
The civic body on Tuesday raised Rs 100 crore through BSE's electronic bidding platform and received an overwhelming response, an official press release said here.
The funds would be used for the strategic road development project which would result in hassle-free travel, less travel time, lesser fuel consumption and better pollution management in the city.
GHMC had previously raised Rs 395 crore, in two tranches of Rs 200 crore and Rs 195 crore through issuance of municipal bonds in February 2018 and August 2018.
"The third tranche of GHMC Municipal Bonds was opened for bidding on 20 August 2019 and has got an overwhelming response from the capital market investors.
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GHMC decided to retain only Rs 100 crore at a coupon rate of 10.23 per cent.
Net interest after GoI (government of India) incentive of Rs 13 crore is at around 9 per cent.
With this issuance, GHMC has also become the largest municipal bond route utiliser in the country, it said.
Mayor B Rammohan said they would place another Rs 200 crore for bidding in the next two months.
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