Lucknow Municipal Corporation bonds list on BSE

MUMBAI: Bonds of Lucknow Municipal Corporation (LMC), the first Municipal Bond from the north Indian states listed on BSE Wednesday. LMC raised Rs 200 crore through Municipal Bonds on a private placement basis using the BSE bond platform. These bonds have a tenure of 10 years and will fetch 8.5% interest per annum. The bond issue proceeds will be used for infrastructure projects in Lucknow.

Speaking on this momentous occasion, Yogi Adityanath, Chief Minister of Uttar Pradesh said “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”

The issue which was opened on 13 November was subscribed 4.5 times. It’s one of the 8 cities in India that have capitalized on the new guidelines to fund the AMRUT and Smart Cities Mission to raise an aggregate of Rs 3,690 crore as per government data.

The capital raised is proposed to partially fund the Amrut projects and other infrastructure projects which had an earmarked requirement of Rs 3,109.5 mn. The AA Stable and AA(CE) Stable rated bonds by India and Brickwork Ratings have a tenure of 10 years and states that the principal amount will be paid in 7 installments from 4th and 10th year.

On the occasion of the listing of the bonds, Ashishkumar Chauhan, MD & CEO of Bombay Stock Stated “ I would like to congratulate Lucknow Municipal Corporation for successfully raising Rs. 200 Crore by issuing Municipal Bond on BSE Bond platform. The order book was filled more than double in a matter of a few minutes establishing Lucknow Municipal Corporation as a credible entity in the Indian bond market. BSE firmly believes that the Indian bond market has a potential for substantial growth. BSE Bond platform has helped bring in transparency and efficiency in price discovery for private placement of debt securities and the platform enables users to subscribe seamlessly.”