Mumbai, June 10 Maharashtra Chief Minister Devendra Fadnavis said on Tuesday that the Pimpri-Chinchwad Municipal Corporation (PCMC) has issued green bonds, becoming India's first municipal body to raise funds through the capital market.
"Prime Minister Narendra Modi has consistently emphasised the need for municipal corporations to be the key drivers of national development to become financially self-reliant. Responding positively to this vision, the Pimpri-Chinchwad Municipal Corporation (PCMC) has issued green bonds, becoming India's first municipal body to raise funds through the capital market," he said at a listing ceremony of PCMC's green bonds held at the Bombay Stock Exchange (BSE).
Deputy Chief Ministers Eknath Shinde and Ajit Pawar, MLAs Mahesh Landge, Shankar Jagtap, Amit Gorkhe, Uma Khapare, Chief Secretary Sujata Saunik, Mumbai Municipal Commissioner Bhushan Gagrani, PCMC Commissioner Shekhar Singh, Additional Chief Secretary Asim Gupta, Principal Secretary K. Govindraj, and BSE Managing Director Sundaram Ramamurthy were present on the occasion.
Chief Minister Fadnavis said that PCMC's green bonds received an overwhelming response from investors.
Within minutes of the issue, Rs 100 crore was raised, and investor interest grew fivefold thereafter, reflecting strong market confidence.
The bonds, with a five-year tenure, carry a competitive interest rate of 7.85 per cent.
Listing bonds on the stock exchange is a complex process involving strict corporate norms.
PCMC successfully completed this process, and the funds raised will be used for environment-friendly and sustainable infrastructure projects.
Additionally, the Central government has awarded an incentive grant of Rs 20 crore for issuing green bonds.
Chief Minister Fadnavis congratulated the entire municipal administration for this achievement.
Before the event, a ceremonial bell was rung to mark the official listing.
"PCMC has successfully raised Rs 200 crore via green bonds through private placement on BSE's electronic bidding platform. The bonds received strong investor interest -- Rs 100 crore was subscribed in just one minute, and bids worth Rs 513 crore were received in total, reflecting a 5.13 times oversubscription. The issue was rated 'AA+' by CRISIL and CARE. The funds will support key projects, including the Green Bridge Project in Nigdi Pradhikaran and the Talco Road Development from Gavalimatha to Indrayani Nagar Chowk," said the Chief Minister's Office in a statement.
Pimpri Chinchwad Municipal Corporation's Commissioner Shekhar Singh said: "PCMC, launched Rs 200 crore bond, which was oversubscribed about 5.13 times eight investors showed confidence in PCMC, and thanks to all those eight investors who are involved in the bidding. We finally ended up raising about Rs 200 crore for the entire project. Thank you to all the investors who have shown real confidence in PCMC for the bond that we have raised. And it also pushes us and motivates us to deliver the project in time, which we will absolutely deliver in the next two years."
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