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The Pune Municipal Corporation (PMC) became the first municipal corporation in the country in recent years to raise funds through municipal bonds by raising Rs 200 crore at 7.59 per cent rate at the Bombay Stock Exchange (BSE) on Monday.
In a tweet, Union Urban Development Minister M Venkaiah Naidu congratulated the PMC for raising the Rs 200 crore from municipal bonds. “New era dawns in Municipal Finance. History created by Pune Municipal Corporation by launching India’s largest municipal bond program,” he said.
The minister added, “Pune raises Rs 200 crore from municipal bond market at 7.59 per cent coupon for 10 years at BSE today. Issue oversubscribed by 6 times. Congratulations.” The PMC is to raise Rs 2,264 crore in five years through municipal bonds for an ambitious project of 24 x 7 equitable water supply across the city.
“A total of 21 bidders participated for PMC bonds. Among the investors were banks, insurance companies and pension funds. The amount of Rs 200 crore will get deposited in the PMC account,” said PMC commissioner Kunal Kumar.He thanked all those involved in making it possible for the PMC to raise funds through municipal bonds for its water supply project.
In a press release, Ashishkumar Chauhan, CEO & MD, BSE Ltd, said the PMC successfully raised Rs 200 crore, the first-ever mobilisation of debt capital by a municipal corporation on the BSE BOND platform.”
“I am delighted that PMC is able to raise Rs 200 crore successfully using BSE BOND platform, a market leading platform for bond raising in India. PMC is the first municipality to raise funds in last several years. I am sure the smart city framework as envisaged by Prime Minister Narendra Modi is taking shape very fast. BSE is delighted to play a significant role in raising funds for the smart cities. We invite all the municipalities to raise the funds and follow PMC’s successful bond issuance,” he said.
The BSE firmly believes the Indian bond markets are poised for a substantial growth and India can use its domestic savings to fund its infrastructure needs in a substantial manner, he added.
Congratulating Naidu and Maharashtra Chief Minister Devendra Fadnavis for their leadership, he said, “I would also like to congratulate the entire team at PMC for their vision and implementation of this pathbreaking and pioneering issue.”