The Lucknow Municipal Corporation (LMC) launched its maiden municipal bond issue of Rs 200 crore on BSE on Friday. The total issue including green shoe option) was over-subscribed by 225% (Rs 450 crore) and closed at a coupon rate of 8.5% for a ten-year bond.
“This is UP government’s first attempt at floating a municipal bond under the AMRUT Scheme and is also the first municipal bond issue from north India. The considerable investor interest evinced by the over-subscription of this issue, especially in the times of Covid, is indicative of improving economic environment in the country,” LMC chief finance officer Maha Milind Lal said.