Lucknow Municipal Corporation bonds list on BSE | What you should know

Lucknow Municipal Corporation (LMC) Bonds, the first Municipal Bond from the north Indian state, listed on BSE Wednesday. LMC raised Rs 200 cr through Municipal Bonds on a private placement basis using the BSE bond platform. These bonds have tenure of 10 years and will fetch 8.5% interest per annum. The bond issue proceeds will be used for infrastructure projects in Lucknow. 
 
Uttar Pradesh Chief Minister Yogi Adityanath who is on a visit to Mumbai, rang the bell at BSE at the listing of bonds of Lucknow Municipal Corporation. The chief minister also said that Ghaziabad municipal bonds will be listed in the next three to six months followed by Pragyaraj, Varanasi, Kanpur and Agra. 

Yogi Adityanath said that during tough times like these, Lucknow Municipal Corporation will progress towards achieving the ‘Aatmanirbhar’ goal with the listing of municipal bonds worth Rs 200 cr. It is a matter of pride for UP that the Lucknow Municipal Corporation has raised Rs 200 crore through its bond issue which got listed on BSE today. It is the trust of the investors which UP has earned during the last three and a half years of governance. It will augment our effort to improve infrastructure in urban areas and it shows the improvement in the Industrial climate of the state and the trust the investors have reposed in the state machinery. 
 
Lucknow becomes first city in UP to list municipal bonds. With this, Lucknow also becomes the ninth city in the country to have raised municipal bonds and the first city to issue such a bond after the launch of AMRUT Scheme. The city of Lucknow is the ninth in the country to have raised municipal bonds that have cumulatively touched around Rs 3,600 cr. The next city to raise municipal bonds will be Ghaziabad, followed by a joint bond by Varanasi, Agra and Kanpur.

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The funds raised through the bond will be invested in various infrastructure schemes in the state capital, including the water supply project and housing project being implemented under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Scheme. 
 
The Rs 200 crore LMC bond, which was launched on November 13, was 4.5 times oversubscribed and closed at 8.5 per cent coupon rate for 10 years, which is the second lowest rate of all the municipal bonds launched till date. Also, later during the day he is schedules to meet Top Business Industrialists and film personalities to seek their investment in their state.