Hans News Service Hyderabad

TheHyderabad Metropolitan Development Authority (HMDA), which used to play a key role in the development of the city by funding projects, is now seeking substantial funds to take up massive projects proposed by the state government. The HMDA has mobilised Rs 3,278 crore via bonds from its planned first tranche of Rs 4,999.87 crore (including green shoe option)

The HMDA has maintained a strong financial position with diversified revenue streams, including development charges, building regularisation schemes, land auctions, and Outer Ring Road (ORR) TollOperate Transfer (TOT) receipts. The HMDA has consistently generated revenue surplus with low debt and maintained a stable credit rating. However, in view of several upcoming big projects, the authority has chosen to focus on raising funds through bonds for completing infrastructure projects.

The HMDA is offering 5 to 8 per cent interest to purchasers of bonds. The authority has the eligibility to raise Rs 19,999.99 crore through multiple tranches of bonds by virtue of its AA rating, with Rs 3,278 crore mobilised in the first tranche recently. It will raise the remaining amount in tranches if required.

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