Media Release
Ghaziabad Nagar Nigam raises Rs. 150 Crore on BSE Bond Platform
Mumbai: March 31, 2021: BSE, Asia’s oldest exchange and now world’s fastest exchange with the speed of 6 microseconds on 1st July 2016 had launched the platform for Electronic Book Mechanism “BSE BOND” for issuance of debt securities on private placement basis.
On March 31, 2021 Ghaziabad Nagar Nigam successfully raised Rs. 150 Crores by issuing Municipal Bond on Private Placement Basis using BSEBOND. (EBP Platform). This is the first ever green bond issuance by Municipal Corporation. AK Capital Services Limited and HDFC Bank Limited were arrangers to the issue.
Ghaziabad Nagar Nigam received 40 bids on BSEBOND platform for Rs. 401 crores which is 4 times of the base issue size. Of these 40 bids, Institutional Investors (QIB) placed 12 bids for Rs 165 crs and Non Institutional Investors placed 18 bids of Rs 265 Crore. BSE is the preferred choice amongst Municipal Corporations to raise debt as this was the 9th successful Municipal Bond Issuance on BSEBOND platform. Out of the total 12 Municipal Bond Issuances totalling to Rs 3839.90 Crore, Rs 3325 Crore have been exclusively raised on BSEBOND platform scaling its market share to 87%. In the current financial year till March 30, 2021, BSE BOND platform has enabled corporate India to raise Rs. 3,68,403 crore (USD 50.16 billion) by issue of debt capital.
Speaking on this, Shri Ashishkumar Chauhan, MD & CEO, BSE said, "On this auspicious occasion of ‘Holi’, we on behalf of BSE congratulate Ghaziabad Nagar Nigam for raising Rs. 150 Crore successfully using the BSE Bond Platform, a market leading platform for bonds issuance in India. Ghaziabad Nagar Nigam is the second Municipal Corporation to raise funds in the state of Uttar Pradesh this year. BSE firmly believes that Indian Bond Market is poised for a substantial growth and wide participation from Non Institutional Investors (Non QIB) investors in this issue shows that India can use its domestic savings to fund its infrastructure needs in a substantial manner."
Shri Mahendra Singh Tanwar, Municipal Commissioner Ghaziabad Nagar Nigam said, “We successfully concluded today the First ever Green Municipal Bond issue in India and raised Rs 150 Crores at a coupon rate of 8.10% which can be termed as a highly competitive rate in the history of Municipal Bonds in India. This demonstrate the confidence of the market in Municipal Bonds segment and is a resounding validation of Good Governance in the state of Uttar Pradesh. These Bonds are listed on BSE. Ghaziabad Municipal Corporation's launch follows that of Lucknow Municipal Corporation's Municipal Bond which was carried out in Dec 2020. We would like to thank the entire team of BSE for providing a robust platform for smooth bond issuance.”
About BSE
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India Largest Mutual Funds Distribution Infrastructure. On October 1, 2018, BSE launched commodity derivatives trading in Gold, Silver, Copper, Oman Crude Oil Guar Gum, Guar Seeds & Turmeric.
BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
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