Uttar Pradesh CM rings bell at BSE for listing Lucknow Municipal Corporation bonds

The 200-crore Lucknow Municipal Corporation (LMC) bonds were listed on Bombay Stock Exchange (BSE) today. Uttar Pradesh Chief Minister Yogi Adityanath attended the bell ceremony.  

Lucknow: Uttar Pradesh Chief Minister Yogi Adityanath on Wednesday attended the listing ceremony of the Lucknow Municipal Corporation (LMC) bond, the first such listing from the entire northern region, on the Bombay Stock Exchange (BSE) in Mumbai.

The 200-crore Lucknow Municipal Corporation (LMC) bonds were listed on Bombay Stock Exchange (BSE) today.

With today’s listing, Lucknow has become the first city in north India and ninth city in India to have raised funds by issuing municipal bonds.

"In COVID times, Lucknow Municipal Corporation will progress towards achieving the 'Aatmanirbhar' goal with the listing of municipal bonds worth Rs 200 crores. The Corporation is committed to improving the lives of the citizens living in its jurisdiction, UP CM Yogi Adityanath," said in the listing ceremony of the LMC bond.

The funds raised through the bond will be invested in various infrastructure schemes in the state capital, including the water supply project and housing project being implemented under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Scheme.

According to the Ministry of Housing and Urban Affairs, it is structured as a ‘strip’ bond with 7 STRRPs (A to G) and principal repayment to happen in 7 equal annual payments from the 4th year to the 10th year. In addition to asset cover, a structured payment mechanism has been put in place to ensure timely payment of both principal and interest obligations.