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Indian civic body's green bond public issue sees robust demand - bankers

Kitco Media
By Reuters
Published:
Updated:
Reuters
MUMBAI, Feb 14 (Reuters) - India's Indore Municipal Corp's debut public issue of green bonds saw a strong demand from investors across categories with the issue being subscribed 2.95 times on the last day, exchange data collated by merchant bankers showed on Tuesday. The issue garnered bids worth 7.20 billion rupees ($87 million) against a total issue size of 2.44 billion rupees, data showed. The civic body is raising funds through separately transferable redeemable principal parts bonds, maturing in three, five, seven, and nine years, and will offer a coupon of 8.25%, payable semi-annually. The issue opened for subscription on Friday and closed on Monday.


Following are the subscription details of Indore Municipal Corp's public issue of bonds provided by lead bankers: Category Issue size Total bids Subscription (No (In (In of times) billion billion


rupees) rupees)
Institution 0.61 2.29 3.76 Corporate 0.61 2.05 3.35 High net 0.61 1.11 1.81 worth
individuals
Retail 0.61 1.76 2.89 Total 2.44 7.21 2.95 The civic body will use the issue to fund a solar power plant in the state of Madhya Pradesh, according to a term sheet issued last week. The bonds are rated AA+ by India Ratings and AA by CARE Ratings. ($1 = 82.7720 Indian rupees) (Reporting by Bhakti Tambe; Editing by Sohini Goswami)

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