CM Stalin inaugurates listing of Chennai Corporation municipal bonds
The Chennai Corporation has raised Rs 200 crore by issuing 10-year municipal bonds at a 7.97 per cent interest rate.
Chief Minister MK Stalin
CHENNAI: Chief Minister MK Stalin on Monday formally inaugurated the listing of the municipal bonds of the Greater Chennai Corporation on the National Stock Exchange (NSE) by ringing the ceremonial bell at a function held at Kalaivanar Arangam here.
The Chennai Corporation has raised Rs 200 crore by issuing 10-year municipal bonds at a 7.97 per cent interest rate. Claiming that the bonds received an overwhelming response from investors, an official release here said that bids worth Rs 421 crore were received via e-bidding on the NSE, which is 4.21 times more than the base issue size of Rs 100 crore. "The enormity of bids demonstrates the strong financial management and investor confidence the GCC and its urban development plans enjoy," the release claimed.
The funds raised through the municipal bonds will be utilised for the Integrated Storm Water Drain (ISWD) project in the Kosasthalaiyar Basin, an important urban infrastructure initiative aimed at flood mitigation and sustainable urban growth in Chennai. The ISWD project in the Kosasthalaiyar Basin, comprising eight large lakes and 71 small water bodies, has been divided into 46 packages. As of May 22, work has been completed in 30 of the 46 packages, and tendering is ongoing for the remaining 16, the release added.
The ISWD project will double the rainwater storage capacity and help manage floodwaters more effectively during the monsoon. By linking the stormwater drains with the nearby lakes, excess rainwater can be diverted to increase water retention and reduce flooding, it said.
The bonds have received an “AA+” rating from India Ratings and Acuité Ratings. To support investor confidence, the TN government has extended special financial support for the bonds under the Project Sustainability Grant Fund (PSGF). Also, the GCC will receive a Rs 26 crore incentive grant under the Union government’s Amrut 2.0 scheme to support the municipal bond issuance, which will help offset costs and reduce financial burdens.
Earlier, CM Stalin presented appreciation mementoes to key stakeholders involved in the successful bond issuance during the listing event held at the NSE. Municipal administration minister KN Nehru, HR&CE minister PK Sekar Babu, Mayor Priya Rajan and chief secretary N Muruganandam were among those who took part in the listing ceremony.
