Gandhinagar Bond Breaks Records with Ninefold Oversubscription
Gandhinagar Municipal Corporation's first municipal bond issue, offering Rs 25 crore, was oversubscribed nine times, receiving bids worth Rs 225 crore. The oversubscription highlights strong investor confidence in GMC's financial credentials. Funds will enhance local infrastructure, and GMC will benefit from an interest subsidy under the AMRUT scheme.
The Gandhinagar Municipal Corporation (GMC) has made a historic entry into the bond market, with its debut bond issue being oversubscribed nine times, a clear indication of significant investor confidence. The Rs 25-crore bond offering attracted bids amounting to Rs 225 crore within just one hour on the National Stock Exchange.
With a coupon rate of 7.65 percent, the bonds have spotlighted Gandhinagar's capability in urban financial innovation on a national level. The capital raised is earmarked for developing infrastructure designed to improve traffic efficiency and commuter convenience, marking a major step forward for Gandhinagar.
Moreover, under the AMRUT scheme, Gandhinagar is slated to receive an interest subsidy of approximately Rs 3.25 crore, amplifying the positive impacts of the bond initiative. This successful foray into the bond market places GMC alongside other leading urban local bodies in India, including Ahmedabad, Surat, Vadodara, and Rajkot.
(With inputs from agencies.)
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