The bond is raised for a tenure of 10 years at a coupon rate of 7.95 per cent per annum.
As a first-time issuer of a Green Municipal Bond, GCC is eligible for an incentive of Rs 10 crore for every Rs 100 crore raised, subject to a maximum of Rs 20 crore, from the Union Government under the AMRUT 2.0 scheme, effectively reducing the cost of borrowing and making the issuance even more financially prudent.
The funds raised through the green bond will be utilised for the biomining and remediation of the Kodungaiyur Dumping Ground, a key environmental infrastructure project undertaken by GCC, according to an official statement.
The project covers about 252 acres of the total 342.91 acre site and involves the scientific processing and removal of legacy municipal solid waste accumulated over several years.
The total project cost is Rs 648.38 crore, of which the Greater Chennai Corporation’s share is Rs 385.64 crore. Out of GCC’s own share, Rs 205.59 crore is raised through Green municipal bonds.
The base issue of Rs 100.03 crore being oversubscribed by 5.02 times. Bids worth Rs 501.9 crore were received through the Electronic Bidding Platform of the National Stock Exchange (NSE).
