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Amaravati to achieve trillion dollar economy
As part of efforts to raise funds for capital city construction, the APCRDA conducted an investors’ meet in Mumbai on Thursday for issue of Amaravati Bond for Rs 2000 crore. The state government told the investors that the Amaravati alone will be a trillion dollar economy by itself in the coming years.
Amaravati: As part of efforts to raise funds for capital city construction, the APCRDA conducted an investors’ meet in Mumbai on Thursday for issue of Amaravati Bond for Rs 2000 crore. The state government told the investors that the Amaravati alone will be a trillion dollar economy by itself in the coming years.
The road show was been attended by over 80 participants from more than 30 instuitional investors, QIBs (Qualified Institutional Bidders), including National Investment and Infrastructure Fund(NIIF), commercial banks such as SBI, ICICI , AXIS bank ,HSBC , IDFC , Indian Bank , YES bank , etc , financial institutions like HUDCO, NABARD,IL&FS, mutual funds like Aditya Birla Capital etc.
The overall financial plan of Amravati, cash flows, progress of various projects, robust and transparent project management and governance structure were explained in detail to the investor community by CRDA officials.
The unique strength of the project such as land availability through land pooling scheme, master plan for the city, theme based economic development, support of the various stake holders have received vide interest from the participants, the CRDA said in release on Thursday.
CRDA commissioner Ch Sreedhar presented the vision of Chief Minister to develop Amaravati as a happy city and people’s capital. He outlined the revenue model, structure of the bond issue and transparent process of issuing the bonds through the electronic bidding platform (EBP) of BSE.
Special Commissioner V Rama Manohar Rao has explained the rating process conducted for the Amaravati bonds by two rating agencies duly considering the robust structure mechanism designed by APCRDA.
Advisors to the Amaravati bonds issue M/s AK Capital, strategic management consultant M/s Mckensey, rating agencies, financial model consultant CRISIL, have participated in the road show in support of the bond issue.
AP Planning Board vice- chairman C Kutumba Rao appraised the investors about the support and guarantee extended by state government for this issue and the overall strong financial status of the state.
Though Amaravati is a Greenfield city, due to its strategic location between already developed cities of Vijayawada and Guntur, wherein the land prices are competing with those of the metro cities, Amaravati Development should be seen as a brownfield development that would enable realising sustained development growth, he said.
The CRDA said the investors expressed keen interest and willingness to participate in the issue on their part and requested for extending the time frame for the issue keeping in view the expected policy announcements in forth coming RBI monetary policy in the first week of June.
For the development of Amaravati, various financing options are being considered ranging from multilateral funding like World Bank, terms loans from financing institutions and commercial banks. In addition, the government is striving to explore the capital market through issuance of private placement bonds.
