Municipal bonds to raise Rs.1,000 crores: K T Rama Rao

Greater Hyderabad Municipal Corporation (GHMC) will shortly issue bonds to raise revenue for executing different works under Strategic Road Development Plan (SRDP).

Municipal Administration and Urban Development Minister KT Rama Rao on Monday tweeted that with an AA credit rating, GHMC was now leading with novel means of resource mobilisation. “Municipal bonds to be issued to raise Rs 1,000 crore for infrastructure improvements in Hyderabad,” KTR tweeted.

“GHMC will be a torchbearer for all corporations across the country trying to do the same,” he added.GHMC Commissioner B Janardhan Reddy, participating in a preliminary investors’ conference at Mumbai on Monday later,



said SBI Capital had been identified as the funds arranger for taking up the exercise.

To issue bonds, the municipal corporation needs to have credit ratings issued by two agencies. Already, CARE rating agency gave GHMC ‘AA’ rating and another agency India Rating also gave GHMC ‘AA’ Stable rating. These were given after considering different parameters, including assets, revenue generation capacity, and goodwill etc.

It is learned that among 94 municipalities and corporations across the country, only 10 corporations have bagged the ‘AA’ rating. Among the top 10, GHMC stands fifth, which indicates the financial status of municipal corporation.