Indore (Madhya Pradesh): Brand Indore’s magic mirrored on National Stock Exchange (NSE) as the country’s cleanest city municipal corporation’s non-convertible and redeemable green bondsaimed at raising up Rs 244 crorefor setting up a 60-MW solar plant received overwhelming response on the opening day of the public issue.
The country’s first municipal public issue was oversubscribed by 2.67 times on Day 1 itself.
At the close of the listing day, the public issue fetched subscriptions worth over Rs 651 crore.
With just two more trading days remaining for the public issue to close, the Indore Municipal Corporation is hoping that the bonds oversubscription will be go beyond five times.
“Rs 651 crore-plus subscription on the opening day shows faith of people in Brand Indore. I think it will be oversubscribed by five times,” Mayor PushyamitraBhargav said.
He said that this overwhelming response to IMC’s public issue is a strong step in the direction of municipal green bonds.
Municipal commissioner Pratibha Pal said that IMC’s public issue’s success will inspire other municipal corporations tobring similar sovereign public issues.
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 spend 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 setup at Jalud, IMC’s saving on footing power bills will be reduced by 25 per cent.
