The maiden municipal bond issuance by Patna Municipal Corporation (PMC), which was listed on the National Stock Exchange of India (NSE) on November 10, marks a historic milestone in Bihar’s journey towards leveraging capital markets for urban infrastructure development, NSE’s MD & CEO Ashishkumar Chauhan on November 11 in a press release.
"It is particularly encouraging to see this initiative come to fruition, as its foundations were laid during NSE’s outreach programme with Government of Bihar, when a senior delegation from the State visited Mumbai last year to gain insights into capital market ecosystem and explore avenues for raising funds through the capital markets," Chauhan said.
Patna Municipal Corporation (PMC) became the first urban local body in Bihar to raise funds through municipal bonds, mobilising nearly Rs 200 crore from the capital market to finance infrastructure development across 15 locations in the state capital. The corporation raised Rs 199.99 crore through its maiden bond offering on October 30, against a base issue size of Rs 100 crore. The issue attracted bids exceeding Rs 205 crore.
The bonds carry an annual coupon rate of 9.20 percent and have a tenure of 10 years.
"This landmark listing reinforces our commitment to working with State Governments across the country to facilitate greater access to the capital market financing," Chauhan said.