Lucknow Municipal Corp’s Rs 200-crore maiden municipal bond oversubscribed by 225%

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November 14, 2020 12:37 PM

The total issue (including green shoe option) was over-subscribed by 225% (Rs 450 crore) and closed at a coupon rate of 8.5% for a ten-year bond.

The considerable investor interest evinced by the over-subscription of this issue,especially in the times of Covid,is in dicative of improving economic environment in the country,” LMC chief finance officer Maha Milind Lal said. 

The Lucknow Municipal Corporation (LMC) launched its maiden municipal bond issue of Rs 200 crore on BSE on Friday. The total issue  including green shoe option) was over-subscribed by 225% (Rs 450 crore) and closed at a coupon rate of 8.5% for a ten-year bond.

“This is UP government’s first attempt at floating a municipal bond under the AMRUT Scheme and is also the first municipal bond issue from north India. The considerable investor interest evinced by the over-subscription of this issue, especially in the times of Covid, is indicative of improving economic environment in the country,” LMC chief finance officer Maha Milind Lal said.

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