Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2018        Go!    
 
 
September 24, Monday 2018 6:59 AM       

       HEADLINES: Franco Mulackal should be subjected to lie detector test, says police                                              Fr. Mathew Manavath raises allegation against Kerala BJP                                              Body of toddler found                                              Bishop brought to Kuruvilangad convent, evidence collected                                              CM reaches office                                              PM Modi to launch Ayushman Bharat today                                              PM to inaugurate Sikkim's first airport Monday                                              Japanese supply ship heads to space station after delays                                              Russia warns US it is 'playing with fire' with sanctions                                              Pak PM Imran hits out at India, calls its response "arrogant" for cancelling talks                                              Gavaskar impressed with Rohit Sharma's captaincy                                              Hasan, Asghar, Rashid fined 15 per cent of their match fees                                              Kaumudi Facebook
       BUSINESS Next Article: Sensex slips in cautious trade ahead of F&O, GDP data  
       Municipalities may raise Rs 6,000 cr from bonds by FY20
 
         Posted on :21:19:16 Nov 29, 2017
   
A A
       Last edited on:21:19:16 Nov 29, 2017
         Tags: Municipalities may raise Rs 6,000 cr from bon
 
Mumbai: Municipalities are likely to raise Rs 6,000 crore through bonds over the next three fiscal years--more than four-times of what they had mopped in the past two decades, says a report.
 
Between fiscals 2011 and 2017, there were no issuances of municipal bonds in the country.
 
"We expect Rs 6,000 crore of municipal bonds to be issued over the next three fiscal years from progressive and proactive urban local bodies (ULBs), riding on policy and regulatory facilitations," Crisil said in a report today.
 
Government and market regulator Sebi have been working to improve ULBs' access to the capital markets 
 
In June 2017, Sebi had notified guidelines on disclosure of financial information by ULBs at regular intervals, and audit of accounts to increase transparency, to improve the prospects for municipal bonds.
 
Government has also announced an interest subsidy scheme to make such issuances competitive.
 
The report said while the amount may seem small in the context of the massive infrastructure needs of the cities, it is more than four times what was raised --Rs 1,350 crore -- in the past 20 years. This June, Pune Municipal Corporation had raised Rs 200 crore from 10-year bonds.
 
Government move to develop civic infrastructure through the Amrut and Smart City missions requires significant capital spending by ULBs.
 
The report estimates ULBs will have to borrow nearly Rs 15,000 crore to fund these projects through fiscal 2023.
 
These will have to be funded by market borrowings in addition to government grants.
 
Several ULBs have initiated their bond issuance process by appointing transaction advisors, Subodh Rai of Crisil said, adding more such issuances are in the offing.
 
"That's because bonds offer ULBs structuring flexibility through longer tenures, annual interest payments, and fixed coupon rates compared with bank loans," Rai said.
 
Capital market also has a large investor base and can turn out to be more competitive than bank borrowing," he said.
 
The agency expects a gradual increase in investor interest in municipal bonds over the medium-term.
 
The implementation of Sebi guidelines will improve transparency and can go a long way in helping ULBs access the capital markets, it added.
A A
       BUSINESS
Next Article: Sensex slips in cautious trade ahead of F&O, GDP data
 
 
BUSINESS HEADLINES
Fed rate decision, rupee, crude oil to drive markets this week: Experts  
"RBI unlikely to hike repo rate in Oct despite weak INR"  
OYO to hire over 2,000 tech experts, engineers by 2020  
Sensex ends in red after 1,000-pt flash crash  
OYO to hire over 2,000 tech experts, engineers by 2020  
Avis India announces free doorstep delivery, collection of self-drive cars  
Dena Bank surges 20%; BoB tumbles 14% post merger announcement  
Vijaya Bank, Dena Bank, BoB to merge: Govt  
Mother Dairy won't cut prices despite Patanjali's cheaper cow milk  
Union Bank of India exits Antwerp diamond market  
Naidu discusses bilateral cooperation in trade and defence with Serbian President  
FundzBazar crosses 2 lakh investors milestone  
Ramdev Baba’s Patanjali launches cow milk, french fries and more  
United Bank of India increases MCLR by five basis points  
RBI submitted a list of high profile fraud cases to PMO: Rajan  
Chemists call for strike on Sep28 against online medicine sale  
Rupee sinks to new low of 72.91, drops 22 paise against USD  
Skills and You develops special module 'Curio'  
Google ready to comply with RBI norms for payment services, says official  
FinMin in touch with RBI for market intervention to contain rupee value  
Sensex plunges over 400 pts as rupee breaches 72.50 mark  
Niti Aayog asks auto cos to stick to timeline to achieve full e-mobility  
FastFox registers 3x growth post rollout of revolutionary 'Open House' model  
Jio completes two years, aims to take India to 'top 5' in broadband connectivity  
Gold rises 0.46% on positive global cues  
 
Do you agree with Rahul's allegation against Modi over Rafale deal?
yes
 
no
 
no opinion
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy