Gandhinagar: Established in the year 2010, Gandhinagar Municipal Corporation had placed an offer on NSE to get a Rs. 25 crore municipal bond from the open market. Citizens have given a huge response to this offer. The municipal bond of Gandhinagar Municipal Corporation was oversubscribed 09 times in just one minute today, and it has received a coupon rate of 7.65 percent. GMC has received an offer of Rs. 225 crore against a bond issue size of Rs. 25 crore.

Gandhinagar Municipal Corporation has been successful in getting municipal bonds after going through the audit, rating, and approval process for two years. Gandhinagar Municipal Corporation has received CARE–(AA) and CRISIL (-AA) ratings for getting municipal bonds. Getting municipal bonds will increase discipline and transparency in the financial accounts of the municipality. Supervision and monitoring of the financial accounts will also be done by a third party.

Gandhinagar Municipal Corporation has become the fifth municipal corporation in the state to get municipal bonds. In the past, Ahmedabad, Surat, Vadodara, and Rajkot Municipal Corporations have been successful in getting municipal bonds. Gandhinagar Municipal Corporation has become the 17th municipal corporation in the entire country to get municipal bonds.

Tipson Consultancy Services Pvt. Ltd., Legal Counsel M.V. Kinni, and Auditor PJNDV have played an important role as the sole arrangers of the bond issuance process of Gandhinagar Municipal Corporation.

Since Gandhinagar Municipal Corporation is one of the first 20 municipal corporations in the country to get municipal bonds, Gandhinagar Municipal Corporation will get an interest subsidy of approximately Rs. 3.25 crore as an incentive from the Government of India, the press release of Gandhinagar Municipal Corporation has said. DeshGujarat