TN says response excellent to Chennai municipal bonds; CM presides over ceremony to list bonds

Chennai, May 26 (PTI) Tamil Nadu Chief Minister M K Stalin on Monday presided over the bell ceremony here to mark the listing of the municipal bonds of the Greater Chennai Corporation in the National Stock Exchange and the government said there has been excellent response to the bonds as the subscription was 4.21 times at Rs 421 crore.

The Chennai Corporation has successfully raised Rs 200 crore by issuing 10-year tenure municipal bonds at 7.97 per cent interest rate, the lowest among bonds of same category issued this year, an official release here said.

The bonds witnessed an excellent response, as the subscription was 4.21 times at Rs 421 crore and the base issue was Rs 100 crore, and this showed the great confidence of the investors in the robust financial management of the Greater Chennai Corporation.

In a social media post, Stalin said: "Tamil Nadu under the Dravidian Model continues to redefine responsible financial governance. The listing of Greater Chennai Corporation bonds on the NSE is a strategic step to fund vital stormwater drain infrastructure, strengthen urban finances and reduce the fiscal burden through transparent and innovative financial management." The Tamil Nadu government said: "The funds raised through the municipal bonds will be used for the Integrated Storm Water Drainage Project (ISWD) in Kosasthalaiyar basin. This is an important infrastructure project, aimed at further improving Chennai's flood prevention infrastructure and enhance sustainable urban growth." Also, India Ratings and Acuite Ratings have assigned AA+ rating for the municipal bonds of the GCC. The Tamil Nadu government has created special financial support under the Project Sustainability Grant Fund in order to encourage the Chennai corporation and strengthen the investors' confidence.

Additionally, "municipal bonds issue incentive" of Rs 26 crore would be received from the Centre for the city corporation under the AMRUT 2.0 (Atal Mission for Rejuvenation and Urban Transformation) scheme, which will help reduce the cost of raising funds by way of municipal bonds.

State Ministers, KN Nehru (Municipal Administration) and PK Sekar Babu (Hindu Religious and Charitable Endowments), Chennai Mayor R Priya, Chief Secretary N Muruganandam and NSE chief economist, Tirthankar Patnaik took part. PTI VGN VGN ROH