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Indore Municipal Corporation’s public issue of green bonds to open for subscription on February 10

Mumbai/Indore February 06, 2023: Indore Municipal Corporation (“IMC” or “Corporation”), established in the year 1956 under the Madhya Pradesh Municipal Corporation Act, 1956 has filed offer document for public issue of rated, listed, taxable, secured, redeemable, non-convertible green municipal bonds of the face value of Rs. 1000 each (comprising of 4 (four) separately, transferable and redeemable principal parts (“STRPP”) namely 1 STRPP A of face value of ₹250/-, 1 STRPP B of face value of ₹250/-, 1 STRPP C of face value of ₹250 and 1 STRPP D of face value of ₹250/-). The Issue opens on February 10, 2023 and closes on February 14, 2023.
The Green Bonds Issue offers coupon rate of 8.25% p.a. payable half yearly and effective yield of 8.42% per annum. The NCDs are proposed to be listed on National Stock Exchange of India Limited (“NSE”) (the “Stock Exchange”) with NSE as the Designated Stock Exchange for the Issue. The Green Bonds have been assigned a rating of ‘CARE AA: Stable’ by CARE Ratings Limited and ‘IND AA+/Stable’ by India Ratings & Research Private Limited.
The Green Bonds have a tenor of 3 years (STRPP A), 5 years (STRPP B), 7 years (STRPP C) and 9 years (STRPP D). Effective yield (per annum) for NCD holders in Category I (QIB), Category II (Corporate), Category III (HNI) and Category IV (Retail Individual) for tenor 3 years, 5 years and 7 years is 8.41% and for STRPP D with 9 years tenor is 8.42%. Interest payments is through various modes, i.e., Direct Credit, NACH, RTGS, NEFT and Registered Post/Speed Post.
The Net Proceeds from the Issue are proposed to be utilized towards installation of 60 MW Ground Mounted Captive Solar PV Power Plant at village Samraj & Ashukhedi, District Khargone in Madhya Pradesh (“Project”).

Lead Managers to the Issue are A.K. Capital Services Limited and SBI Capital Markets Limited and Vistra ITCL (India) Limited as trustee. Registrar to the Issue is KFin Technologies Limited.

The terms of the NCDs offered in the Issue are set out below:
Series I
Type of Instrument Secured NCDs
Face Value / Issue Price of NCDs (₹ /NCDs) ₹ 1,000 per NCD comprising of
1 STRPP A of Face value of ₹250,
1 STRPP B of Face value of ₹250;
1 STRPP C of Face value of ₹250 and
1 STRPP D of Face value of ₹250
Minimum Application ₹ 10,000 (10 NCDs comprising of 10 STRPP A, 10 STRPP B, 10 STRPP C, 10 STRPP D
In Multiples of thereafter (₹) ₹ 1,000 (1 NCD comprising of 1 STRPP A, 1 STRPP B, 1 STRPP C, 1 STRPP D)
STRPP with different ISIN STRPP A STRPP B STRPP C STRPP D
Tenor 3 years 5 years 7 years 9 years
Face value per STRPP (₹) Rs 250 Rs 250 Rs 250 Rs 250
Aggregating to ₹ 1,000 (i.e. 1 NCD)
Coupon (% per annum) for NCD Holders in Category I, Category II, Category III & Category IV 8.25% p.a. payable half yearly 8.25% p.a. payable half yearly 8.25% p.a. payable half yearly 8.25% p.a. payable half yearly
Effective Yield (% per annum) for NCD Holders in Category I, Category II, Category III & Category IV 8.41% 8.41% 8.41% 8.42%
Frequency of Interest Payment Half Yearly Half Yearly Half Yearly Half Yearly
Mode of Interest Payment Through Various Modes available i.e., Direct Credit, NACH, RTGS, NEFT and Registered Post/Speed Post.
Maturity / Redemption (from the Deemed Date of Allotment) 3 years 5 years 7 years 9 years
Put and Call Option N.A. N.A. N.A. N.A.

About Indore Municipal Corporation (IMC): Indore Municipal Corporation (IMC) is the chief municipal body of Indore city. Currently, Shri Pushyamitra Bhargav is the Mayor and Smt. Pratibha Pal, IAS, is the Commissioner (Nagar Aayukt) of the Issuer. IMC is covered under AMRUT Scheme of Government of India. Also, Indore Municipal Corporation holds 50% equity shareholding of Indore Smart City Development Limited (ISCDL) which has been incorporated as a Special Purpose Vehicle under the Companies Act, 2013 to implement the smart city proposal of Indore Municipal Corporation under Smart City Mission (SCM). ISCDL has been involved in successful completion of several projects.

Disclaimer: Indore Municipal Corporation (“IMC”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a public issue of rated, listed, taxable, secured, redeemable, non-convertible, green municipal bonds in the nature of debentures (“Green Bonds”). This announcement does not constitute an offer to sell or solicitation of an offer or invitation to buy any securities in any jurisdiction. Investment in the Green Bonds involves a degree of risk. Investors should see the Offer Document dated February 01, 2023 of Indore Municipal Corporation (“Offer Document”) filed with Securities and Exchange Board of India (“SEBI”) and the designated Stock Exchange including the section titled “Risk Factors” of the Offer Document, available on the websites of the Issuer at https://imcindore.mp.gov.in, NSE at www.nseindia.com, SEBI at www.sebi.gov.in and the websites of the lead managers www.akgroup.co.in and www.sbicaps.com.
LISTING: The Green Bonds offered through this Offer Document are proposed to be listed on National Stock Exchange of India Limited (“NSE”) (the “Stock Exchange”). The Issuer has received in-principle approval from NSE for listing of the Green Bonds to be allotted pursuant to the Issue through its letter dated December 26, 2022 bearing number NSE/LIST/D/2022/0190. For the purposes of the Issue, the Designated Stock Exchange is National Stock Exchange of India Limited.
GENERAL RISKS: Investment in debt securities involve a degree of risk and investors should not invest any funds in such securities, unless they can afford to take the risks attached to such investments. Investors are advised to read the Offer Document including the section titled “Risk Factors” on page no. 19 of this Offer Document carefully before taking an investment decision in relation to this Issue. For taking an investment decision, the investors must rely on their own examination of the Issuer, the Offer Document to be issued and the Issue including the risks involved. Specific attention of investors is invited to the section titled “Risk Factors” on page no. 19 of this Offer Document. These risks are not, and are not intended to be, a complete list of all risks and considerations relevant to the Green Bonds or investor’s decision to purchase the Green Bonds. The Issue of Green Bonds has not been recommended or approved by SEBI nor does SEBI guarantee the accuracy or adequacy of this Offer Document.
DISCLAIMER CLAUSE OF NSE: As required, a copy of this Offer Document has been submitted to National Stock Exchange of India Limited (hereinafter referred to as NSE). NSE has, vide its letter Ref .: NSE/LIST/D/2022/0190 dated December 26, 2022, given permission to the issuer to use the Exchange’s name in this Offer Document as one of the stock exchanges on which this Issuer’s securities are proposed to be listed. The Exchange has scrutinized this draft offer document for its limited internal purpose of deciding on the matter of granting the aforesaid permission to this Issuer.
It is to be distinctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the offer document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this offer document; nor does it warrant that this Issuer’s securities will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the financial or other soundness of this Issuer, its promoters, its management or any scheme or project of this Issuer. Every person who desires to apply for or otherwise acquire any securities of this Issuer may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription /acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever.

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