Indore Municipal Corporation’s public issue of green bonds opens for subscription on 10th

Indore Municipal Corporation (“IMC”), established in the year 1956 under the Madhya Pradesh Municipal Corporation Act, 1956 has filed offer document for public issue of rated, listed, taxable, secured, redeemable, non-convertible green municipal bonds of the face value of Rs. 1000 each (comprising of 4 (four) separately, transferable and redeemable principal parts (“STRPP”) namely 1 STRPP A of face value of ₹250/-, 1 STRPP B of face value of ₹250/-, 1 STRPP C of face value of ₹250 and 1 STRPP D of face value of ₹250/-). The Issue opens on February 10, 2023 and closes on February 14, 2023.

• NCD Issue opens: February 10, 2023
• NCD closes: February 14, 2023
• Face value: Rs. 1,000 each
• Base issue size: Rs. 122 crores
• Tenor: 3 years, 5 years, 7 years and 9 years
• Effective Yield: 8.42% p.a.#
• Coupon rate: 8.25% p.a. payable half yearly

The Green Bonds Issue offers coupon rate of 8.25% p.a. payable half yearly and effective yield of 8.42% per annum. The NCDs are proposed to be listed on National Stock Exchange as the Designated Stock Exchange for the Issue. The Green Bonds have been assigned a rating of ‘CARE AA: Stable’ by CARE

Ratings Limited and ‘IND AA+/Stable’ by India Ratings & Research Private Limited.

The Green Bonds have a tenor of 3 years (STRPP A), 5 years (STRPP B), 7 years (STRPP C) and 9 years (STRPP D). Effective yield (per annum) for NCD holders in Category I (QIB), Category II (Corporate), Category III (HNI) and Category IV (Retail Individual) for tenor 3 years, 5 years and 7 years is 8.41% and for STRPP D with 9 years tenor is 8.42%. Interest payments is through various modes, i.e., Direct Credit, NACH, RTGS, NEFT and Registered Post/Speed Post.

The Net Proceeds from the Issue are proposed to be utilized towards installation of 60 MW Ground Mounted Captive Solar PV Power Plant at village Samraj & Ashukhedi, District Khargone in Madhya Pradesh.

Indore Municipal Corporation is the chief municipal body of Indore city. Currently, Pushyamitra Bhargav is the Mayor and Smt. Pratibha Pal, IAS, is the Commissioner of the Issuer. IMC is covered under AMRUT Scheme of Government of India. Also, Indore Municipal Corporation holds 50% equity shareholding of Indore Smart City Development Limited (ISCDL) which has been incorporated as a Special Purpose Vehicle under the Companies Act, 2013 to implement the smart city proposal of Indore Municipal Corporation under Smart City Mission (SCM). ISCDL has been involved in successful completion of several projects.