Chennai Corporation's Bonds Make a Splash on NSE

The Greater Chennai Corporation's municipal bonds were listed on the NSE, with the subscription reaching 4.21 times the base issue. Tamil Nadu's Chief Minister M K Stalin highlighted the bonds' role in funding vital flood prevention infrastructure. The bonds received a high AA+ rating, and the Centre provided additional funding support.

Tamil Nadu's Chief Minister M K Stalin marked a significant milestone as the Greater Chennai Corporation's municipal bonds were successfully listed on the National Stock Exchange. The bonds attracted a tremendous response, with subscriptions reaching 4.21 times the base issue, totaling an impressive Rs 421 crore.

The funds, raised by issuing 10-year tenure bonds at a 7.97% interest rate, will support the critical Integrated Storm Water Drainage Project in the Kosasthalaiyar basin, aimed at enhancing Chennai's flood prevention infrastructure. This strategic move highlights the Dravidian Model's innovative financial governance.

India Ratings and Acuite Ratings awarded an AA+ rating to boost investor confidence further. Additionally, the Centre will provide a Rs 26 crore incentive under the AMRUT 2.0 scheme, aiding in reducing the cost of raising funds through these municipal bonds.

(With inputs from agencies.)