H'bad municipality raises Rs 195cr from bonds in 2nd tranche;

The Greater Hyderabad Municipal Corporation (GHMC), which today raised Rs 195 crore from the bond market for the second time in six months, said it will mop up Rs 600 crore more in the course of the fiscal to fund some key infra development in the city.

It can be noted that the GHMC had raised Rs 200 crore in a maiden bond issuance in February this year at a coupon of 8.90 per cent, while today's issuance is priced at 9.38 per cent for a 10-year debt.

The Pune Municipal corporation had last year raised Rs 100 crore at 7.58 per cent and the Indore civic body earlier this year at 9.25 per cent, when the RBI rates were 50 bps cheaper.

The Rs 100-crore issue, rated AA by India Ratings and Care Ratings, was raised through an e-auction on the BSE and listed on the same exchange, and got oversubscribed by 2.5 times, and the corporation availed of the green-shoe option by 0.95 times taking the total amount to Rs 195 crore, GHMC commissioner B Janardhan Reddy told PTI this evening here.

He also said, "the corporation will hit the market again through the course of this fiscal year with nearly Rs 600 crore more of debt sales as it has a mandate to raise Rs 1,000 crore from the debt market."