Rajkot Municipal Corp accepts bids for 5-year bonds, bankers say
India's Rajkot Municipal Corp has accepted bids worth 1 billion rupees ($12 million) for bonds maturing in five years, two merchant bankers said on Wednesday.
The municipal corporation will pay a coupon of 7.90%, payable on a quarterly basis, and had invited bids from bankers and investors for the issue earlier in the day, they said.
The municipal corporation did not immediately reply to Reuters' request for comment.
This will be the first municipal bond issue in the current financial year.
Here is the list of deals reported so far on Oct. 16:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Rajkot Municipal Corp | 5 years | 7.90 (quarterly) | 1 | Oct. 16 | AA- (Crisil) |
LIC Housing Finance | 5 years | To be decided | 10+30 | Oct. 17 | AAA (Crisil, CareEdge) |
* Size includes base plus greenshoe for some issues
($1 = 83.9850 Indian rupees)