Is Pimpri-Chinchwad India's First Civic Body to Raise Funds from Capital Markets?

Mumbai, June 10 (NationPress) Maharashtra's Chief Minister Devendra Fadnavis announced on Tuesday that the Pimpri-Chinchwad Municipal Corporation (PCMC) has successfully issued green bonds, marking a historic milestone as India's first municipal body to secure funding from the capital market.

"Prime Minister Narendra Modi has continuously highlighted the importance of municipal corporations being pivotal in national development, striving for financial independence. In alignment with this vision, the Pimpri-Chinchwad Municipal Corporation (PCMC) has issued green bonds, becoming the first in India to raise capital through the market," he stated during the bond listing ceremony at the Bombay Stock Exchange (BSE).

Present at the event were Deputy Chief Ministers Eknath Shinde and Ajit Pawar, along with MLAs Mahesh Landge, Shankar Jagtap, Amit Gorkhe, Uma Khapare, and Chief Secretary Sujata Saunik, among others.

Chief Minister Fadnavis remarked that PCMC's green bonds received enthusiastic interest from investors.

In just minutes, they raised Rs 100 crore, with investor interest later increasing fivefold, indicating robust market confidence.

The bonds, having a five-year maturity period, offer a competitive interest rate of 7.85 percent.

Listing bonds on the stock exchange involves a complex process governed by stringent corporate standards.

PCMC successfully navigated this process, and the funds raised will be directed towards environmentally sustainable infrastructure projects.

Additionally, the Central government has granted an incentive of Rs 20 crore for the issuance of green bonds.

Chief Minister Fadnavis congratulated the municipal administration for this significant accomplishment.

A ceremonial bell was rung to commemorate the official listing.

"PCMC has effectively raised Rs 200 crore through green bonds via private placement on BSE's electronic bidding platform. The bonds drew substantial investor interest, with Rs 100 crore subscribed in just one minute and total bids reaching Rs 513 crore, achieving a remarkable oversubscription rate of 5.13 times. The issue received an 'AA+' rating from CRISIL and CARE. The funds will facilitate key projects, including the Green Bridge Project in Nigdi Pradhikaran and the Talco Road Development from Gavalimatha to Indrayani Nagar Chowk," stated the Chief Minister's Office.

PCMC's Commissioner Shekhar Singh expressed gratitude, stating: "PCMC has launched a Rs 200 crore bond that was oversubscribed by approximately 5.13 times, showcasing confidence from eight investors. We raised Rs 200 crore for the entire project, and we appreciate all the investors’ confidence in PCMC. This motivates us to deliver the project within the next two years."