+
Hyderabad to float third tranche of municipal bonds to fund construction projects
ECONOMY & POLICY

Hyderabad to float third tranche of municipal bonds to fund construction projects

The Greater Hyderabad Municipal Corporation (GHMC) is set to float the third tranche of municipal bonds for Rs 3.05 billion on August 20. The funds generated from the bonds will be used to execute the Strategic Road Development Plan (SRDP), which deals with the construction of flyovers, grade separators and underpasses.

The bidding will be, reportedly, be carried out on the e-bidding platform of Bombay Stock Exchange (BSE), with an issue size of Rs 2.05 billion with a greenshoe option of an additional Rs 1 billion. The amount which is being raised in turn, for the SRDP construction work will aid in minimising traffic congestion, reduce travel time and fuel consumption, while also bringing down pollution levels in the city. GHMC expects to collect a total of Rs 10 billion in a phase-wise manner from the bond market with a maturity period of 10 years. 

As reported, the corporation preferred to issue municipal bonds over Rupee Term Loan (RTL), even though the share market has wildly fluctuated these past few weeks, due to the additional financial incentives offered by the Ministry of Housing and Urban Affairs (MoHUA) for 2019-2020. This incentive will provide GHMC with a total of Rs 0.26 billion, at a rate of Rs 0.13 billion per Rs 1 billion of bonds issued. This will be capped at Rs 2.5 billion, without an incentive of approximate Rs 0.13 billion for the other Rs 1.5 billion.

In the past, GHMC raised roughly Rs 3.95 billion through municipal bonds in two tranches. These funds were utilised for further construction of skyways, major corridors and flyovers under SRDP. The corporation aims to complete the work on these projects by the funds acquired in the third tranche. 

The Greater Hyderabad Municipal Corporation (GHMC) is set to float the third tranche of municipal bonds for Rs 3.05 billion on August 20. The funds generated from the bonds will be used to execute the Strategic Road Development Plan (SRDP), which deals with the construction of flyovers, grade separators and underpasses.The bidding will be, reportedly, be carried out on the e-bidding platform of Bombay Stock Exchange (BSE), with an issue size of Rs 2.05 billion with a greenshoe option of an additional Rs 1 billion. The amount which is being raised in turn, for the SRDP construction work will aid in minimising traffic congestion, reduce travel time and fuel consumption, while also bringing down pollution levels in the city. GHMC expects to collect a total of Rs 10 billion in a phase-wise manner from the bond market with a maturity period of 10 years. As reported, the corporation preferred to issue municipal bonds over Rupee Term Loan (RTL), even though the share market has wildly fluctuated these past few weeks, due to the additional financial incentives offered by the Ministry of Housing and Urban Affairs (MoHUA) for 2019-2020. This incentive will provide GHMC with a total of Rs 0.26 billion, at a rate of Rs 0.13 billion per Rs 1 billion of bonds issued. This will be capped at Rs 2.5 billion, without an incentive of approximate Rs 0.13 billion for the other Rs 1.5 billion.In the past, GHMC raised roughly Rs 3.95 billion through municipal bonds in two tranches. These funds were utilised for further construction of skyways, major corridors and flyovers under SRDP. The corporation aims to complete the work on these projects by the funds acquired in the third tranche. 

Next Story
Infrastructure Transport

Mumbai–Pune Link to Bypass Ghat Ready by December

A 13-kilometre connector on the Mumbai–Pune Expressway, designed to bypass the congested and accident-prone Lonavala–Khandala ghat section, is set to be completed by December. The Maharashtra State Road Development Corporation (MSRDC), overseeing the project, has confirmed that construction is in its final stages.Currently, the 19-kilometre stretch between Khopoli and the Sinhgad Institute forces vehicles to navigate narrow, winding ghat roads. Once operational, the new link will allow motorists to skip this stretch entirely, easing congestion and improving safety.Handling around 75,000 ve..

Next Story
Infrastructure Transport

Metro Line 4, Flyover Open to Ease Thane Traffic

In a bid to streamline transport and ease mounting congestion, the Maharashtra government has inaugurated two major infrastructure projects in Mumbai: Metro Line 4 and Phase 1 of the Kasarvadavli Flyover. The newly opened 800-metre flyover is now operational, offering commuters faster transit between Thane and Gaimukh.Transport Minister Pratap Sarnaik formally opened the flyover, which lies parallel to the under-construction Metro Line 4 corridor. Built to decongest the heavily trafficked Ghodbunder junction, the structure enables seamless movement for vehicles bypassing the bottleneck.Designe..

Next Story
Resources

Pidilite Industries Marks World Youth Skills Day by Strengthening Skilling Initiatives

On the occasion of World Youth Skills Day, Pidilite Industries, a leading manufacturer of adhesives, sealants, construction chemicals and art materials, reaffirmed its commitment to youth empowerment through vocational training and digital tools. With the construction and real estate sectors in India expected to generate 30 million jobs by 2030, skilling is seen as a critical enabler for the country’s growth. Pidilite has trained over one lakh youth through its various initiatives, spanning trades such as plumbing, waterproofing, woodworking, construction, organic farming, interior desi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?