Capital Development Authority (CDA) has finalised preparations for launching country''s first Municipal Bond, offered by a civic body, informed sources in the CDA revealed to Business Recorder on Friday. The preparations were given final shape to launch Rs 3 billion Municipal Bonds in second or third week of the month, they said.
Ministry of Finance has given the CDA green signal about the launching of Rs 3 billion Municipal Bonds to meet the financial requirements of the civic body, sources said, adding that the Ministry has also informed the international Financial Institutions about the bond.
They said that with the launch of the bonds, the CDA would be able to continue work on the on-going development projects, which suffered due to cut in Federal Budget for the year 2010-11. It is pertinent to note that three commercial banks are evaluating the viability of Rs 3 billion municipal bonds, which is facing Rs 35 billion cash burden.
The CDA sources said that the Standard Chartered, Habib Bank Limited and United Bank Limited have shown interest in launching the municipal bonds and they are providing financial assistance to CDA on the basis of its liquidity. CDA sources said that the bonds would not be sold to individuals, but to institutions to generate Rs 3 billion to meet the growing financial needs of the civic body.
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