Mumbai, 22nd June 2017: In consonance with Hon. Prime Minister Narendra Modi’s vision of creating a vibrant market of Municipal Bonds in India, today PMC is achieve the distinction of becoming the first Urban Local Body in the country to issue Municipal Bonds. This issue has presented new asset class to the Indian markets. Pune Municipal Corporation has achieved the success under the able guidance of Government of Maharashtra, Ministry of Finance, Ministry of Urban Development, Security Exchange Board of India, U.S.Department of Treasury’s office of Technical Assistance (OTA).
The bond issue is the part of Rs. 2264 crs. borrowing plan of Pune Municipal Corporation that will be spread over 5 years. The proceeds raised through the bonds sale will be use for a 24X7 Water Supply project which is estimated at around 3500 crs.
A key factor for the success of any major infrastructure projects is the consensus of the concerned community. This is especially true in cases where the important improvement of the water supply services due to the 24X7 distribution in also accompanied by a drastic change in the payment of the water charges based upon the actual water consumed. This 24X7 water supply project will achieve the following objectives:
This “Municipal Bonds” which will be a bench mark for the next issuances by Urban Local Body was oversubscribed six times having received a subscription worth Rs. 1200 crs. The bonds rated AA+ one of the top ratings, offers 7.59% about 30-40 basis points more than bonds sold by State Government. Domestic Insurance Pension Funds and large State owned banks invested in the Pune Municipal Corporation’s Muni Bonds.
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