India Infrastructure Finance subscribed to 50% of Pimpri Chinchwad Municipal Corp’s green bond

Green Bonds

India Infrastructure Finance Company, National Bank for Financing Infrastructure and Development (NaBFID) along with UCO Bank have subscribed to a major portion of the Pimpri Chinchwad Municipal Corporation’s green bond issuance of Rs 200 crore following its BSE listing on June 10, officials told Moneycontrol on condition of anonymity.

Officials said that AK Capital Services and Dhanlaxmi Bank too have invested in the bonds as the listing of the municipal green bonds concluded on BSE.

As per sources, National Bank for Financing Infrastructure and Development invested Rs 100 crore, NaBFID invested Rs 30 crore, and Rs 25 crore each were allocated by UCO Bank and AK Capital Services, with Dhanlaxmi Bank subscribing to bonds worth Rs 20 crore. The issue saw bids from eight investors of which five got allotments.

“Pimpri Chinchwad Municipal Corporation launched Rs 200 crore bond which was oversubscribed about 5.13 times, and eight investors showed confidence,” Shekhar Singh, Commissioner of the PCMC said in a release.

The Green Bonds have a tenor of 4 years (STRPP A), 5 years (STRPP B), with a fixed coupon, interest payments to be made on a half-yearly basis, as per release.

The Green Bonds have been rated ‘AA+’ by CARE Ratings and CRISIL with ‘Stable’ outlook. AK Capital was the sole lead manager to the bonds issue and SBICAP Trustee Company was the debenture trustee to the issue.