+
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 Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?