Indore Municipal Corporations 244 cr Green Bond garners over 660 cr demand on Day 1

 Indore Municipal Corporations 244 cr Green Bond garners over 660 cr demand on Day 1

The issue was fully subscribed within two hours of opening

 

·         Base Issue of Rs 122 crs oversubscribed by 5.42 times with a total collection of Rs 661.52 Crore

·         The debutant Retail category was oversubscribed by 4.16 times with a collection of Rs 126.99 Crore

·         Issue closes on Tuesday, February 14, 2023

 

^# Applicable for STRPP D for tenure of 9 years. For further details, please refer to the Offer Document dated February 01, 2023

 

Mumbai/Indore February 10, 2023: Indore Municipal Corporation (“IMC” or “Corporation”), established in the year 1956 under the Madhya Pradesh Municipal Corporation Act, 1956 public issue of rated, listed, taxable, secured, redeemable, non-convertible green municipal bonds has been oversubscribed 5.42 times on the first day garnering Rs 661.52 crore.

 

The issue has a face value of Rs. 1,000 each. The base issue size is Rs. 122 crores with an option to retain oversubscription up to Rs. 122 crores, aggregating up to Rs. 244 crores.

 

According to the base issue size, the Institution category was subscribed the most with 7.52 times, followed by 6.62 times in the corporate category, 4.16 times in the retail category, 3.39 times in the HNI category. The Issue opened on February 10, 2023 and closes Tuesday, February 14, 2023.

 

The issue saw a robust demand in the Institutional and Corporate category of investors with a total collection of Rs 229.35 Crore, and Rs 201.86 crore respectively, while Retail and HNI category garnered Rs 126.99 crore and Rs 103.31 crore respectively.

 

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 are through various modes, i.e., Direct Credit, NACH, RTGS, NEFT and Registered Post/Speed Post.

 

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.

 

Lead Managers to the Issue are A.K. Capital Services Limited and SBI Capital Markets Limited and Vistra ITCL (India) Limited as trustee. Registrar to the Issue is KFin Technologies Limited.

 

The terms of the NCDs offered in the Issue are set out below:

Series	I
Type of Instrument	Secured NCDs
Face Value / Issue Price of NCDs (₹ /NCDs)	₹ 1,000 per NCD comprising of 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
Minimum Application	₹ 10,000 (10 NCDs comprising of 10 STRPP A, 10 STRPP B, 10 STRPP C, 10 STRPP D
In Multiples of thereafter (₹)	₹ 1,000 (1 NCD comprising of 1 STRPP A, 1 STRPP B, 1 STRPP C, 1 STRPP D)
STRPP with different ISIN	STRPP A	STRPP B		STRPP C		STRPP D
Tenor	3 years	5 years		7 years		9 years
Face value per STRPP (₹)	Rs 250	Rs 250		Rs 250		Rs 250
	Aggregating to ₹ 1,000 (i.e. 1 NCD)
Coupon (% per annum) for NCD Holders in Category I, Category II, Category III & Category IV	8.25% p.a. payable half yearly		8.25% p.a. payable half yearly	8.25% p.a. payable half yearly		8.25% p.a. payable half yearly
Effective Yield (% per annum) for NCD Holders in Category I, Category II, Category III & Category IV	8.41%		8.41%	8.41%		8.42%
Frequency of Interest Payment	Half Yearly		Half Yearly	Half Yearly		Half Yearly
Mode of Interest Payment	Through Various Modes available i.e., Direct Credit, NACH, RTGS, NEFT and Registered Post/Speed Post.
Maturity / Redemption (from the Deemed Date of Allotment)	3 years		5 years		7 years		9 years
Put and Call Option	N.A.		N.A.		N.A.		N.A.