AMC’s Rs 200 crore Green Bonds oversubscribed by 6.8 times

Ahmedabad: The Amdavad Municipal Corporation (AMC) launched its municipal green bonds valued at Rs 200 crore on Monday. However, the bonds were oversubscribed by 6.8 times.

The municipal green bonds were fully subscribed in less than four seconds of opening for subscription, with a total of 30 institutional investors subscribing to bonds worth Rs 1,360 crore. Notably, Gujarat State Financial Services, a significant investor, subscribed to bonds worth Rs 170 crore.

Municipal bonds, issued to raise capital, get the investor’s principal amount along with interest in return. The interest paid to investors by the bond issuer, AMC, is 7.9 percent.

While investors will receive a 7.9 percent interest rate, a civic official explained that due to an incentive of Rs 20 crore received from the Ministry of Housing and Urban Affairs, the AMC will effectively bear an interest rate of 5.9 percent for the coupon rate. DeshGujarat