BMC begins process to raise Rs 1,000 crore via bonds in FY27
Mumbai's civic body, the BMC, is set to raise ₹1,000 crore via bonds in FY27, with merchant bankers invited to manage the issuance. This marks the municipality's first foray into debt markets, aiming to fund its substantial budget. Experts anticip...
By Rozebud Gonsalves, ET Bureau |
IANS
Mumbai: The Brihanmumbai Municipal Corporation (BMC) has begun the process of raising ₹1,000 crore through bonds in FY27, with sources telling ET that Asia's richest civic body is ready to invite bids from merchant bankers to manage the issuance.
The pre-bid meeting is scheduled May 29, while the deadline for bid submissions is June 15, according to people familiar with the matter. The arrangers are also required to bring in investors and ensure subscription to the bonds.
The issuance would mark the maiden bond sale at the municipal body with a budget bigger than those of many smaller states. It would join a swelling list of urban local bodies to tap debt markets for funding.
"Considering that BMC is AAA rated municipality, it would get a rate of about 8% to 8.25%. I won't be surprised even if the rate goes below 8%," said a debt market expert.
The pre-bid meeting is scheduled May 29, while the deadline for bid submissions is June 15, according to people familiar with the matter. The arrangers are also required to bring in investors and ensure subscription to the bonds.
The issuance would mark the maiden bond sale at the municipal body with a budget bigger than those of many smaller states. It would join a swelling list of urban local bodies to tap debt markets for funding.
"Considering that BMC is AAA rated municipality, it would get a rate of about 8% to 8.25%. I won't be surprised even if the rate goes below 8%," said a debt market expert.
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