Indore (MAdhya Pradesh): The non-convertible debentures (NCDs) and redeemable green bonds of IMC, which are aimed at raising Rs 244 crore for setting up a 60-MW solar plant, will be listed in Bhopal on Tuesday.
Chief Minister Shivraj Singh Chouhan, Indore mayor Pushyamitra Bhargav, principal secretary (urban development and housing), Indore municipal commissioner Pratibha Pal and additional municipal commissioner Divyank Singh will be present during the listing.
The country’s first municipal green bonds issued as public issue were oversubscribed by 2.96 times within three days. The issue was open from February 10 to 14.
In the three days, the public issue fetched subscriptions worth over Rs 741 crore.
“The 2.96 times subscription shows faith of people in Brand Indore. Now we expecting good listing on Tuesday,” Mayor Pushyamitra Bhargav said.
The green bonds with an effective coupon rate of 8.25 per cent and effective yield of 8.42 per cent, have been assigned a rating of ‘CARE AA: Stable’ by CARE Ratings Limited and ‘IND AA+/Stable’ by India Ratings & Research Private Limited.
The face value of green bonds is Rs 1000 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).
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 amount raised from the green bonds will be spent on installation of 60 MW solar power plant at Jalud pumping station in Khargone district.
The IMC annually spends around Rs 300 crore on electricity required to pull out water from Narmada river at Jalud and transport it to the city. When the 60 MW solar power plant will be set up at Jalud, IMC’s saving on power bills will be reduced by 25 per cent.
Rs 62 cr subsidy from Centre to IMC’s green bonds
IMC has received a subsidy of Rs 62 crore for its green bonds from the Central government. MP Shankar Lalwani said that IMC is committed to fulfil the resolve of Prime Minister Narendra Modi to move towards green energy.
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