Indore civic body green bond subscribed 5.4 times on the first day

The aggregate size of Indore Municipal's green bond sale is Rs 244 crore comprising a base size of Rs 122 crore and an option to retain oversubscription up to Rs 122 crore

Green bonds
The green bonds, which have been rated AA+ by India Ratings and AA by Care Ratings are in the form of four strips
Bhaskar Dutta Mumbai
2 min read Last Updated : Feb 10 2023 | 11:07 PM IST
Indore Municipal Corporation’s (IMC’s) green bond issuance was sub­scribed 5.42 times on its first day, attracting bids worth Rs 661.52 crore. 

The aggregate size of IMC’s green bond sale is Rs 244 crore comprising a base size of Rs 122 crore and an option to retain oversubscription up to Rs 122 crore. 

The issue, which opened on Friday, closes on February 14. 

“According to the base issue size, the institution category was subscribed the most with 7.52 times, followed by 6.62 times in the corporate category, 4.16 times in the retail category, 3.39 times in the high-net-worth individual category,” the civic body said.


The institutional and corporate category of investors garnered Rs 229.35 crore and Rs 201.86 crore, respectively. The retail and high net worth individual category attracted bids worth Rs 126.99 crore and Rs 103.31 crore, respectively.
The green bonds, which have been rated AA+ by India Ratings and AA by Care Ratings are in the form of four strips. The strip format of bond issuances includes separate transferable and redeemable principal parts.

The maturities of the separate portions are three years, five years, seven years and nine years. The effective yield for the three-year, five-year and seven-year categories of the strips are at 8.41 per cent, while that for the nine-year tenor is 8.42 per cent.

The proceeds from Indore’s bond sale are proposed to be used for installation of a 60 MW solar power plant at Khargone district of Madhya Pradesh.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Green bondsIndoreMuni bond

Next Story