Hyderabad Municipal Corp raises Rs 1.95 bn for road projects through bonds

Funds raised through the bonds will be utilized to meet funding requirement of Strategic Road Development Plan

Greater Hyderabad Municipal Corporation (GHMC) has raised Rs 1.95 billion through municipal bonds for financing road development projects in city.

These 10-year bonds were placed with investors, including finance companies, banks and pension funds, at a coupon rate of 9.38 per cent. They carry “AA” rating from CARE and India Ratings.

SBI Capital Market (SBI Caps), arranger for transaction, said in a statement GHMC received bids of Rs 2.5 billion, which was 2.5 times the base issue size of Rs 1 billion. This is the second municipal bond issuance for GHMC. It had raised Rs 2 billion earlier this year. 

Funds raised through