Bangalore Metro Rail Corporation Ltd. (BMRCL) will raise money from the market by floating bonds by July 20. It will be the first such initiative by a Metro rail corporation in the country. The move had been on hold for over a year due to market volatility.
BMRCL was watching the markets and waiting for the right moment to take the plunge. The budget announcement paved the way for deciding the date to float the bonds.
M. Naveen Kumar, Director (Finance), BMRCL told The Hindu on Saturday: “We have been in a state of readiness but market conditions had been bad. The bonds are aimed at raising Rs. 300 crore in one tranche, which is sufficient for the time being.”
The other sources of funds are the Japan International Cooperation Agency (JICA); French Agency for Development (AFD); nationalised banks, including Vijaya Bank, Bank of Maharashtra and Bank of India; and Housing and Urban Development Corporation Limited (HUDCO).
The “total debt component” — bonds and other sources — will account for 41 per cent of the total project cost — Rs. 13,845 crore — of Phase 1 of Namma Metro, which covers 42 km.
