Uttar Pradesh Chief Minister Yogi Adityanath listed the bond of Lucknow Municipal Corporation (LMC) thus grabbing eyeballs as LMC became the first municipal bonds from North India to be listed on BSE.
“A new chapter will be written in the development history of UP, CM Shri @myogiadityanath Ji to ring the bell at @BSEIndia in Mumbai today for listing of bond of Lucknow Municipal Corporation. LMC’s bonds have witnessed an astounding oversubscription since its launch,” Yogi Adityanath’s Office tweeted in Hindi. Along with the launch of the Rs 200 crore Lucknow Municipal bond, UP CM will also conduct meetings with several industrialists, media reports indicated.
आज @BSEIndia में लखनऊ नगर निगम के बॉन्ड्स की लिस्टिंग के साथ CM श्री @myogiadityanath जी उ.प्र. के नगरीय विकास के क्षेत्र में नए युग का आरंभ करेंगे।@UPGovt अगले कुछ महीनों के भीतर प्रदेश के अनेक नगर निकायों के बॉन्ड्स जारी करने की प्रक्रिया को गति प्रदान करेगी।#Yogijiinmumbai
— Yogi Adityanath Office (@myogioffice) December 2, 2020
On November 13, the Lucknow Municipal Corporation (LMC) managed to secure capital of Rs 200 crore by issuing municipal bonds on a private placement basis using the BSE BOND platform, the BSE had said, adding that the municipal corporation had registered a reception of 21 bids on the platform for Rs 450 crore, which is 4.5 times the issue size.
Out of the total 11 municipal bond issuances amounting to Rs 3,690 crore, Rs 3,175 crore has been raised on the BSE Bond platform, escalating its market share to 86 percent, the exchange had said. Eight other cities have raised municipal bonds so far. These include Amaravati (Rs 2000 crore), Visakhapatnam (Rs 80 crore), Ahmedabad (Rs 200 crore), Surat (Rs 200 crore), Bhopal (Rs 175 crore), Indore (Rs 140 crore), Pune (Rs 495 crore) and Hyderabad (Rs 200 crore).
The funds raised by the Lucknow Municipal Corporation will be further channelled in various infrastructure schemes in the state capital. The proceeds of the issue are currently set to be invested in a water supply project being implemented under AMRUT and in a housing project. The tenure of the Lucknow Municipal Corporation bond is 10 years and it is structured as a ‘strip’ bond with 7 STRRPs (A to G) and principal repayment to happen in 7 equal annual payments from the fourth year to the tenth year.
“It is a matter of pride for UP that the Lucknow Municipal Corporation has raised Rs 200 crore through its bond issue which got listed on BSE today. It is the trust of the investors which UP has earned during the last three and a half years of governance. It will augment our effort to improve infrastructure in urban areas and it shows the improvement in the Industrial climate of the state and the trust the investors have reposed in the state machinery,” Yogi Adityanath, Chief Minister of Uttar Pradesh said on the occasion.