Ahmedabad Municipal Corporation (AMC) on Thursday listed its bonds on the debt securities platform of the National Stock Exchange (NSE).
The municipal bonds of the AMC had received the largest amount of bids for any municipal corporation on any exchange platform, NSE said in a media statement.
The AMC issued bonds aggregating ₹100 crore with a greenshoe option of the same amount on January 11 and received a record subscription of ₹1,085 crore from 19 institutions. The bonds were oversubscribed 5.42 times.
The issue proceeds will be utilized towards the central government scheme AMRUT Mission for Urban Development.
In 2018-19, the AMC received AA+ rating from two agencies, including Crisil and India Rating, making it favourable for banks, mutual funds and insurance companies to invest in its bonds.
“Ahmedabad Municipal Corporation has ambitious plans for the city and fund raising through bonds is a welcome mode," Bijal Patel, mayor of Ahmedabad, said in a statement.
The AMC has tapped the debt market after a gap of about 14 years. This is the fifth such bond issue by the city. Its last issue was in 2005. Other cities, including Pune and Indore, have recently set the trend of approaching the capital markets to raise funds for infrastructure projects.
Vijay Nehra, municipal commissioner, Ahmedabad, said the city had significant projects lined up for the future and was looking forward to more such bond issues.
Ravi Varanasi, chief business development officer at the NSE, said the exchange had emerged as a platform of choice for price discovery and listing of debt securities.
"We are happy to provide a platform helping the AMC to raise funds efficiently for urban development projects," he said in a statement.