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CRDA to issue Amaravati bonds to raise Rs 2,000 crore

Posted by Avenue.in on May 19, 2018
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Amaravati development bonds crda
Amaravati: With an objective to raise money for capital construction, the CRDA will be releasing bonds worth Rs 2,000 crores by May-end. The officials said the credit rating and clearance for issuing the bonds would be obtained next week, post which the bonds will be issued in the market.In the weekly review meeting on Thursday, Capital Region Development Authority (CRDA)officials informed Chief Minister Chandrababu Naidu that they were expecting a credit rating of A or A+. While the credit rating would be given by a rating agency, the clearance for the issuance of bonds would be given by Centre.

“We are working towards AA also. The final rating will be given on May 22. We will most likely get the clearance from the Centre by May 23. So, the bonds can be issued by the end of May,” CRDA commissioner Cherukuri Sreedhar explained. He added that raising money through bonds, for which the state government would be the guarantor, would help in payment to contractors and other infrastructure development works.

Speaking on the occasion, CM Naidu directed the officials to also issue special bonds in the name of ‘Amaravati bonds’, specially for Telugu NRIs, as they are keen on being a part of capital construction. It maybe recalled that the authority had hired an international credit rating agency in April to rate the bonds, and also hired international and domestic counsels to look into the legal aspects of their issuance.

Meanwhile, CM Naidu said, “Since a large number of people are coming forward to donate money for construction of Amaravati, a special wing should be formed to maintain transparency in transactions.” He asked Cherukuri Sreedhar to create another department to help 30,000 farmer families in the Capital become entrepreneurs.

On the occasion, Sreedhar said a team from London School of Economics chose Amaravati for a case study to examine the financing and development plans. “Four officials from CRDA have been invited to give a lecture to students from June 4 to 8. After that, a group of students would visit Amaravati for two months and study its success story,” he said.

In the first week of June, CRDA will organise ‘Real Estate Developers’ Conclave’ where national and international firms, like DLF, RMZ, My Home and Mahindra Life Spaces, would participate. CM Naidu will visit inspect the ongoing greenery development and road works in Amaravati on Saturday, Chairperson and MD of Amaravati Development Corporation Ltd, Lakshmi Parthasarathy, said the Amaravati Central Park in Sakhamuru will be open for public in six months.

The CRDA is planning to develop ‘Corporate Street’ in the core capital region. The officials said the ‘street’ will house headquarters of corporate institutions. The officials said that an Expression of Interest has already been released, according to which half to one-acre land would be given to the corporate organisations.

Source: Indian Express