The new issue will be a green bond issue, which is a minor change from the first issue, which was four times oversubscribed, Khatri said.
The proceeds from the new issue will be invested in the arrangements for the Kumbh Mela to be held by the end of 2027 and also to ensure 24-hour water supply to the city, she said.
A senior official said the civic body is also mulling over the idea of a public issue, which will raise the cost of borrowing but ensure a larger investor base.
Khatri said three institutions, including National Bank for Infrastructure Financing and Development, have subscribed for the initial issue of Rs 200 crore.The coupon rate for the initial issue is 7.8 percent, but Khatri said the money is virtually interest-free when you consider the money the company can get from the government’s incentive schemes.
In case of the first bond raising, the total interest outgo for the five-year bond will be Rs 80 crore, while the company will get incentives of over Rs 94 crore, she said.
An amount of Rs 26 crore will come as incentives under the AMRUT scheme of the Union Ministry of Housing and Urban Affairs, while the rest of the incentives will come through the Urban Challenge Fund, she explained.
Nashik is the third government entity in the state to access the municipal bond markets, and Khatri said a host of other cities will have access to financing through the coming route.
The NMC has the scope to raise up to Rs 1,000 crore through the route, she said, pointing to a detailed assessment based on the body’s finances.
To raise money through the route, agencies need to make some adjustments in accounting and also ensure that revenue collection through aspects such as property taxes is done in a timely manner, she said.
The money raised from the first issue will be used for construction of Ram Jhula pedestrian bridge, construction of a vending plaza near Kalaram temple, construction of a proposed command and control center near Kapaleshwar temple and improvement works on sewerage network for Panchavati, Satpur and Nashik West administrative zones, an official statement said.
Chief Minister Devendra Fadnavis attended the listing ceremony at the NSE on Tuesday.
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