AP govt likely to raise money from bond market to fund capital city project

Contracts worth of close to Rs 250 billion were already awarded for various projects within the proposed capital city area

Andhra Pradesh Capital Region Development Authority (APCRDA), the nodal agency for the development of the green-field capital city of AP, would consider issuing the short-tenure bonds of even 18 months to 2-year repayment period in future as a quick way to raise the resources to partly fund this massive project.

The CRDA authorities have recently conducted a roadshow in financial capital, Mumbai, for a maiden bond issue for Rs 20 billion with a 10-year repayment period, redeemable from the sixth year onwards.

The rate of interest on the bond, which is backed by the state government guarantee on