To add more feathers to the city’s infrastructure, the Ahmedabad civic body has decided to raise funds via Dollar Bonds. The city’s Municipal Corporation will be first in the whole country to raise funds through this procedure. Earlier also, the Ahmedabad Municipal Corporation has raised Rs 200 crore through municipal bonds which the body used for the development of infrastructure services.
Giving more information on the same, Vijay Nehra, Commissioner, AMC said, “We have recently signed an MOU with International Financial Corporation, a World Bank-arm, in order to arrange Dollar Bonds. The civic body has planned to raise $200 Million through this. With the help this money, we will develop the city’s infrastructure, work on providing more facilities like hospitals, basic amenities to the residents.”
The civic body will start work on this process after May.
As per the corporation’s officials, the whole money will be generated in two phases as the maturity time will be between three and ten years. In order to strengthen their financial stature to get funding easily, the Municipal Corporation has decided to enhance its credit ratings from the (Credit Rating Information Services of India Limited) CRISIL.
Last month only, CRISIL has upgraded the rating of the AMC from AA to AA+.
A dollar bond, also referred to as dollar-dominated bond refers to a municipal bond which has its price quoted in dollars, rather than on its yield to maturity