Out of the total 12 Municipal Bond Issuances totaling to Rs 3839.90 Crore, Rs 3325 Crore have been exclusively raised on BSE BOND platform scaling its market share to 87%.
BSE, Asia’s oldest exchange and now the world’s fastest exchange with the speed of 6 microseconds on 1st July 2016 had launched the platform for Electronic Book Mechanism “BSE BOND” for issuance of debt securities on a private placement basis.
On March 31, 2021, Ghaziabad Nagar Nigam successfully raised Rs. 150 Crores by issuing Municipal Bond on Private Placement Basis using BSE BOND. (EBP Platform). This is the first-ever green bond issuance by Municipal Corporation. AK Capital Services Limited and HDFC Bank Limited were arrangers to the issue.
Ghaziabad Nagar Nigam received 40 bids on BSE BOND platform for Rs. 401 crores which are 4 times the base issue size. Of these 40 bids, Institutional Investors (QIB) placed 12 bids for Rs 165 crs and Non-Institutional Investors placed 18 bids of Rs 265 Crore. BSE is the preferred choice amongst Municipal Corporations to raise debt as this was the 9th successful Municipal Bond Issuance on BSE BOND platform. Out of the total 12 Municipal Bond Issuances totaling to Rs 3839.90 Crore, Rs 3325 Crore have been exclusively raised on BSEBOND platform scaling its market share to 87%. In the current financial year till March 30, 2021, the BSE BOND platform has enabled corporate India to raise Rs. 3,68,403 crore (USD 50.16 billion) by issue of debt capital
Speaking on this, Shri Ashishkumar Chauhan, MD & CEO, BSE said, “On this auspicious occasion of ‘Holi’, we on behalf of BSE congratulate Ghaziabad Nagar Nigam for raising Rs. 150 Crore successfully using the BSE Bond Platform, a market-leading platform for bonds issuance in India. Ghaziabad Nagar Nigam is the second Municipal Corporation to raise funds in the state of Uttar Pradesh this year. BSE firmly believes that the Indian Bond Market is poised for substantial growth and wide participation from Non-Institutional Investors (Non-QIB) investors in this issue shows that India can use its domestic savings to fund its infrastructure needs in a substantial manner.”
Shri Mahendra Singh Tanwar, Municipal Commissioner Ghaziabad Nagar Nigam said, “We successfully concluded today the First ever Green Municipal Bond issue in India and raised Rs 150 Crores at a coupon rate of 8.10% which can be termed as a highly competitive rate in the history of Municipal Bonds in India. This demonstrates the confidence of the market in the Municipal Bonds segment and is a resounding validation of Good Governance in the state of Uttar Pradesh. These Bonds are listed on BSE. Ghaziabad Municipal Corporation’s launch follows that of Lucknow Municipal Corporation’s Municipal Bond which was carried out in Dec 2020. We would like to thank the entire team of BSE for providing a robust platform for smooth bond issuance”
Source: Business World