GHMC raises Rs 1.95 billion through municipal bonds for financing road projects

The Greater Hyderabad Municipal Corporation (GHMC) has raised Rs 1.95 billion through municipal bonds for financing road development projects in Hyderabad. These 10-year bonds were offered at a coupon rate of 9.38 per cent. The GHMC received bids worth Rs 2.5 billion, which was 2.5 times the base issue size. The unsecured bond issue is backed by a structure payment mechanism. Under it, property tax and fees and user charges collected by and due to the GHMC will be deposited every month in a separate no-lien escrow account for debt servicing of bonds. (This is the second municipal bond issuance by the GHMC. Funds raised through the second bond issue will be utilised to meet the funding requirement of the Strategic Road Development Plan.