Indore: Municipal Corporation's green bonds get good response, raises Rs 300 crore in less than 3 hours

Indore (Madhya Pradesh): Indore Municipal Corporation (IMC) issued green bonds worth Rs 244 crore at 10:30 am on Friday, said mayor Pushyamitra Bhargav. The bonds were listed under the National Stock Exchange and raised Rs 300 crore within 2:30 hours of issuance.

Bhargav termed the move a 'financial innovation' and said that the bonds have been issued for the setting up of a 60 MW solar power plant at Jalud Pumping Station in Khargone district.

It is noteworthy that Indore is the first urban local body in the country to issue green bonds which will help in promoting smart investment. The face value of green bonds is Rs 1,000 each (comprising of 4 parts STRPP A of face value Rs 250, STRPP B of face value Rs 250, STRPP C of face value Rs 250 and STRPP D of face value Rs 250).

Issue closes on February 14

The green bonds have a tenor of three years (STRPP A), five years (STRPP B), seven years (STRPP C), and nine years (STRPP D).

The IMC has offered a coupon rate of Rs 8.25 per cent per annum payable half-yearly and an effective yield of 8.42 per cent per annum to the investors. The issue closes on February 14.