The Rs. 200-crore Lucknow Municipal Corporation (LMC) bonds listed on BSE. And to mark the listing ceremony, UP CM Minister Yogi Adityanath was present. And now with it Lucknow has become the first city in UP and ninth in India to have raised funds by issuing municipal bonds.
In November this year, LMC received 21 bids on BSE Bond platform for Rs 450 crore, which is 4.5 times of the total issue size of Rs 100 crore, a statement said.
The municipal bonds offer 8.5 per cent interest per annum and have tenure of 10 years. The proceeds are proposed to be invested in a water supply project being implemented under AMRUT (Atal Mission for Rejuvenation and Urban Transformation) scheme of the government and a housing project. This bond issue from Lucknow Municipal Corporation is rated 'AA' by India Ratings and 'AA (CE)' by Brickwork Ratings.
The structure of the bond is like a strip bond with 7 STRRPs (A to G) and principal repayment to happen in 7 equal annual payments from the 4th year to the 10th year.