Firm Matters
BackKhaitan & Co advised Pimpri Chinchwad Municipal Corporation on the private placement of up to 10,000 secured, rated, listed, taxable, redeemable, non-convertible green bonds in the nature of debentures, each having a face value of INR 2 Lacs. Each bond comprises two separately transferable and redeemable principal parts (STRPPs): one STRPP A of face value INR 1 Lacs and one STRPP B of face value INR 1 Lacs. The issuance was for an aggregate amount of INR 100 crores, with a green shoe option of up to INR 100 crores, aggregating to a total of up to INR 200 crores (Green Bonds), under the Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015, as amended.
The Green Bonds have been rated AAA+ by CRISIL Ratings Limited and CARE Ratings Limited and have been issued at a coupon rate of 7.85%. The issuance was oversubscribed by 5.13 times and received bids worth INR 513 crores on the electronic bidding platform of BSE Limited. The structured repayment mechanism of the Green Bonds is secured through an escrow of Property Tax collections, ensuring timely servicing of interest and principal payments.
This was Maharashtra’s first green municipal bond issuance, with its proceeds being utilised for funding the green infrastructure projects.
Deal Team
The core team consisted of Soumya Mohapatra (Partner), Riya Bhattacharjee (Partner), Surbhi Narang (Principal Associate), Nikunj Mehta (Senior Associate), Ananya Bharadwaja (Associate), Gyana Pathak (Associate), Mishi Malhotra (Associate) and Rishabh Kumar (Associate).
