Tamil Nadu: Chennai Corporation Raises Rs 200 Crore Through Bond Listing On NSE

In a significant development for urban infrastructure financing, the Greater Chennai Corporation (GCC) on Monday (26 May) listed its Rs 200 crore Municipal Bonds on the National Stock Exchange (NSE).

The funds raised through this bond issue will be directed towards the Integrated Storm Water Drainage System (ISWD) in the Kosasthalaiyar River Basin, according to a report by The Hindu.

The bond issue received an overwhelming response from investors, with bids totalling Rs 421 crore, which was almost four times the base issue size of Rs 100 crore, according to a statement from the Tamil Nadu government. The 10 year bonds carry an interest rate of 7.97 per cent per annum.

Tamil Nadu Chief Minister MK Stalin inaugurated the Listing Ceremony in Chennai, joined by key officials including Municipal Administration Minister KN Nehru, Mayor of Chennai R Priya, Chief Secretary N Muruganantham, and GCC Commissioner J Kumaragurubaran.

“This reflects the strong faith investors have in Tamil Nadu and the GCC,” said Dr Tirthankar Patnaik, Chief Economist at the NSE, during the ceremony.

He added that Coimbatore, Tiruppur, and Tiruchi municipal corporations are also preparing to raise funds through similar municipal bond issues, each targeting Rs 100 crore.

GCC Commissioner J Kumaragurubaran also noted that the Corporation will receive an Urban Bond Issue Incentive of Rs 26 crore under the Centre’s AMRUT 2.0 scheme, which will reduce the effective cost of funds raised.

The ISWD project in the Kosasthalaiyar River Basin carries a projected cost exceeding Rs 3,000 crore. It is being implemented in 46 packages, with 30 already completed and the remainder underway as of 22 May.

The bond issue has been rated ‘AA+’ by India Ratings and Acuité Ratings, affirming the financial credibility of the Greater Chennai Corporation.

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