Amravati 2018 bonds listed on BSE…

Indore Municipality recently raised bonds on NSE.

There has been talk of Government of Andhra Pradesh raising money for building its proposed capital of Amravati via bonds. The bonds were issued on 14 August and got listed on BSE today:

Andhra Pradesh CM Nara Chandrababu Naidu on Monday rang the opening bell to mark the listing ceremony of ‘Amaravati Bond 2018’ at Bombay Stock Exchange (BSE). The bond was issued by Andhra Pradesh Capital Region Development Authority (APCRDA) for the construction of the state capital, Amaravati. 

The platform was launched on July 1, 2016, to facilitate online bidding for private placement of debt securities. Since then, 120 issuers have garnered Rs 4.86 lakh crore through the exchange mechanism, reports PTI.

“On August 14, 2018, APCRDA successfully raised Rs 2,000 crore by issuing bonds on private placement basis using BSE BOND platform,” the exchange said in a statement.

“Amaravati Bond 2018 has created history by over-subscription raising Rs 2,000 crore and is the testimony of investors’ confidence in Andhra Pradesh and Amaravati. This will help in developing Amaravati as smart, sustainable and happy city and as a global destination of people, jobs and investments,” Andhra Pradesh CM Chandrababu Naidu said.

Interesting developments in history of bond finance in India. It also tells us that old-age competitive rivalry between BSE and NSE could move from equity to debt space as well. NSE has been the clear winner in equity space and it will be interesting whether BSE can create some competition in the debt space…

Update:

This piece raises concerns on the bonds – 10.32%-  being on the higher side

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