Mon May 26 08:23:25 UTC 2025: Okay, here’s a summary and a news article based on the provided text:
**Summary:**
The Greater Chennai Corporation (GCC) has successfully listed its municipal bonds on the National Stock Exchange (NSE) to raise funds for infrastructure projects, specifically the Integrated Storm Water Drainage Project (ISWDP). The bond issue was oversubscribed, demonstrating strong investor confidence. This move makes GCC the first in Tamil Nadu to utilize municipal bonds via the NSE. The funds raised will contribute to the ISWDP and potentially future projects like the Broadway bus stand multi-modal facility. The listing also makes the GCC eligible for incentives under the AMRUT 2.0 scheme.
**News Article:**
**Chennai Corporation Makes History, Lists Municipal Bonds on NSE**
CHENNAI, INDIA – May 26, 2025 – The Greater Chennai Corporation (GCC) celebrated a significant milestone today, becoming the first urban local body in Tamil Nadu to list its municipal bonds on the National Stock Exchange (NSE). A bell-ringing ceremony, attended by Tamil Nadu Chief Minister M.K. Stalin and NSE chief economist Tirthankar Patnaik, marked the occasion.
The GCC’s bond issue, with a base size of ₹100 crore and a green shoe option of an additional ₹100 crore, was met with strong investor demand, achieving an oversubscription of 4.21 times. The GCC raised ₹200 crore through bonds with an interest rate of 7.97% for a duration of 10 years. India Ratings and Acuitte have rated the GCC municipal bonds as AA+.
“It is always a delight for us at NSE when urban local bodies make use of capital markets as an alternative means of financing,” said Mr. Patnaik during the ceremony. He also mentioned that other Municipal Corporations from Tamil Nadu, including Coimbatore, Tiruppur, and Tiruchi, are in the process of raising funds through municipal bonds.
The funds raised will primarily be used to partially finance the ongoing Integrated Storm Water Drainage Project (ISWDP) in the Kosasthalaiyar basin, a ₹3,059 crore initiative aimed at improving drainage infrastructure and mitigating flooding. The project involves restoring, deepening, and widening 65 lakes and ponds in the basin.
GCC Commissioner J. Kumaragurubaran later revealed plans to potentially list municipal bonds for the multi-modal facility at Broadway bus stand, a project valued at ₹822 crore, with the GCC looking to raise ₹500 crore through bonds.
The successful listing also qualifies the GCC for a ₹26 crore incentive under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 scheme. This initiative underscores the growing trend of urban local bodies leveraging capital markets to finance critical infrastructure projects.
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