This bond received powerful interest from the investors, Rs 100 crore were raised in just one minute and bidding worth Rs 513 crore was received in total, reflecting a 5.13 times oversubscription
-1749555025239_d.png "Pimpri-Chinchwad becomes India's first municipal corporation to raise funds from the capital market")
CM Fadnavis addressing the dignitaries present during the inaugration ceremony of the green bond introduced by PCMC. Pic/X
The Pimpri-Chinchwad Municipal Corporation (PCMC) has issued a green bond to become the first municipal body to get listed in the market. PCMC is now the first corporation to raise funds through the capital market, an official statement said on Tuesday.
The statement said that the listing ceremony of the green bond was recently done at the BSE International Convention Hall, Bombay Stock Exchange (BSE). Deputy Chief Ministers Eknath Shinde and Ajit Pawar, MLAs Mahesh Landge, Shankar Jagtap, Amit Gorkhe, Uma Khapare, Chief Secretary Sujata Saunik, Brihanmumbai Municipal Corporation (BMC) Commissioner Bhushan Gagrani, PCMC Commissioner Shekhar Singh, Additional Chief Secretary Asim Gupta, Principal Secretary Dr K Govindraj, and BSE MD Sundaram Ramamurthy were present during the event.
Speaking on the occasion CM Fadnavis asserted that the green bond introduced by PCMC received overwhelming response from the investors. Within minutes of the issue, Rs 100 crore were raised, and the number of investors are constantly increasing since then, lifting the confidence of the stock market. The bonds, with a 5-year tenure, carry a competitive interest rate of 7.85 per cent. Listing bonds on the stock exchange is a complicated procedure with strict corporate regulations. This complex process was successfully completed by PCMC and the funds raised will be utilised for eco-friendly and sustainable development projects.
Additionally, the central government granted Rs 20 crore to issue green bonds.
CM Fadnavis applauded the entire administration of the municipality for this success. Inaugurating the event a ceremonial bell was rung to mark the official listing.
PCMC has successfully managed to raise Rs 200 crore through green bonds by private placement on BSE’s electronic bidding platform. This bond received powerful interest from the investors, Rs 100 crore were raised in just one minute and bidding worth Rs 513 crore was received in total, reflecting a 5.13 times oversubscription. The issue was rated ‘AA+’ by CRISIL and CARE. These funds will support key projects promoting sustaniable developement including the Green Bridge Project in Nigdi Pradhikaran and the development project of Talco Road from Gawlimatha to Indrayani Nagar Chowk.
"Prime Minister Narendra Modi has been constantly encouraging the need for municipal corporations to become financially independent, Pimpri-Chinchwad Municipal Corporation's step is a response to this vision," the official statement said.
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