Amaravati: Bonds for development of new Andhra Pradesh capital Amaravati were listed on Bombay Stock Exchange (BSE) on Monday.
'Amaravati Bonds 2018' worth Rs 2,000 crore were issued by Andhra Pradesh Capital Region Development Authority (APCRDA). The issue received an oversubscription by 1.53 times.
The listing was made with Chief Minister N. Chandrababu Naidu ringing the bell at an event, attended by BSE MD Ashish Kumar Chauhan, Andhra Pradesh Finance Minister Y. Ramakrishnudu and senior officials.
According to APCRDA, this is the largest bond issued from a local authority.
The 10-year issue is offered at a fixed interest rate of 10.32% per annum, paid quarterly, with a 5-year moratorium on principal payment, which is redeemed on yearly basis for next five years at 20% every year. The issue is guaranteed by the Government of Andhra Pradesh and is rated by CRISIL, Brickwork and Auicte.
Naidu said that success of the Amaravati Bond 2018 reflects the investor confidence in his government and the development of Amaravati.
"I want Amravati to be the happiest city incorporating the highest quality of infrastructure and a thriving economic environment," he said.
Naidu has mandated APCRDA to explore innovative approaches to financing the capital city, which will highlight the financial efficiency, transparency and demonstrate project strength to investor community.
"To start with, only a small portion of Rs 2,000 crore in the entire project requirement of Rs. 48,115 crore of phase-I has been mobilized through bonds to support the financial requirement of Rs 10,000 crore within this financial year," said Cherukuri Kutumba Rao, Vice Chairman, Andhra Pradesh State Planning Board.
He said modalities would be finalised soon to make retail investor partners in Amaravati development.
According to APCRDA, projects worth over 27,000 crore are currently under way and projects worth 11,000 crore are ready to be awarded.