Mumbai, Dec 2 (IANS): Uttar Pradesh Chief Minister Yogi Adityanath rang the bell at the Bombay Stock Exchange (BSE) marking the listing of bonds of the Lucknow Municipal Corporation (LMC), here on Wednesday morning.

Adityanath attended a special listing function organized at the BSE Towers this morning where he performed the traditional bell ringing ceremony, hoping to herald a new investment start for Uttar Pradesh through the route of Municipal Bonds, in the presence of other top officials.

"It's a matter of pride for UP that the LMC has raised Rs 300 crore through the bond issue which is listed today. It is the trust of the investors which UP has earned during the last three-and-half years of governance," said Yogi on the occasion.

The Chief Minister added that this would augment the state's efforts to boost the urban infrastructure with the improvement in the state's industrial climate.

BSE Managing Director and CEO Ashishkumar Chauhan said the speed with which LMC order book was filled in a matter of minutes established its credibility in the Indian bond market.

"The BSE firmly believes the Indian bond market has a potential for substantial growth. The BSE Bond platform has ensured transparency and efficiency in price discovery for private placement of debt securities and enables seamless subscriptions," informed Chauhan.

The A.K. Capital Services Ltd. Managing Director and CEO A.K. Mittal said the LMC bonds are backed by strong structured payment mechanism making it a secure investment with attractive returns, with HDFC Bank as the merchant banker to the issue.

"The Indian Municipal Bond market is at a very nascent stage compared with the US Municipal Bond market, given the rapid urbanization here, it will play a pivotal role in the country," Mittal stated.

The LMC's Rs 200 crore pre-Diwali 10-year bond issue for 8.50 per cent interest received 21 bids was oversubscribed 4.5 times, with the issue size grabbed within 60 seconds of the issue opening on November 13.

Lucknow is the first civic body of Uttar Pradesh and the first city in North India to issue Municipal Bonds, with municipalities of other cities like Agra, Varanasi and Kanpur likely to follow in the Bharatiya Janata Party-ruled state.

The LMC raised Rs 200 crore via the Municipal Bonds on private placement using the BSE Bond platform listed on the exchange on December 2, said an official.

Lucknow is one of the eight Indian cities that have capitalized on the new guidelines -- for part-funding projects under the AMRUT and Smart Cities Mission -- to raise a total of Rs 3,690 crore, as per official data.

Adityanath arrived in Mumbai late on Tuesday night for a series of meetings with top business heads, financial companies and Bollywood personalities, intending to 'sell' Uttar Pradesh as the new destination for business, investments, and tourism besides the film industry.