Mishra said that this is the first ‘Green Bond’, meant for environmentally sustainable project of wastewater reuse.
Mishra also said that this demonstrates the confidence of the market in Municipal Bond segment and is a resounding validation of good governance in Uttar Pradesh.
“Raising Bond is an instrument for paradigm change in urban governance. It makes cities clean up their governance and financial systems. It triggers market oriented transparent city administration and promotes self-reliance,” he said.
Mishra said that coupon rate of 8.10% is the most competitive rate so far for municipal bonds in India. The issue was oversubscribed with 40 bids totalling to Rs 401 crore on BSE’s EBP platform.
Pune, Hyderabad, Indore, Amravati, Bhopal, Visakhapatnam, Ahmedabad, Surat and Lucknow have raised the municipal bonds recently.
MoHUA has released Rs 207 crore as financial incentive to these cities to subvent interest rate equivalent to 2% for raising Bonds.
Mishra has urged other States with cities rated A+ and above to take up this transformative path expeditiously. Those cities rated below may reform their governance and financial structures to improve ratings and then go for raising Municipal Bonds.
