After the success of the Pune Municipal Corporation (PMC) in raising funds through municipal bonds, the Pune Metropolitan Region Development Authority (PMRDA) has begun the process to do the same to implement its proposed mega project of Metro rail, ring road, town planning scheme and Pune-Mumbai hyperloop.
“The PMRDA has invited proposal from merchant banker for raising funds for PMRDA through municipal bonds. The intention is to raise Rs 1,050 crore in the beginning and later increase it as per requirement,” said PMRDA official.
He said there was no specific project, for which the funds would be raised through municipal bonds. There were major projects, on which the PMRDA had already started working on towards implementation of various development schemes such as Pune Metro Line 3, Mumbai Pune Hyperloop, Pune Ring Road and Town Planning Schemes, he added.
According to PMRDA, the merchant banker will have to provide professional advice and assistance in regard to the amount of funds required to be raised through municipal bonds or infrastructure bonds. It will also need to offer advice and assistance regarding appropriate bond structure or through other sources to meet the financial requirement on infrastructure projects and intervals at which raising of funds shall be done at appropriate times as per market appetite situations.
The banker will prepare draft memorandum of information for the authority’s bonds issue with relevant documentation. Also, it will prepare proposals for raising funds for the projects from other sources, it said.
The PMRDA said the appointed banker would be responsible to advise and assist the authority in complete documentation for statutory, regulatory and financial approvals from the Union government, SEBI, Stock Exchange/s, depository service agencies, RBI and any other government agencies as regards to raising of funds through bonds or other appropriate sources.
PMRDA said, “The banker will advise on the acceptability of interest rate and terms of the issue in light of market condition and ensure best return at lowest possible total cost to the PMRDA.”