Patna Municipal Corporation lists Rs 200 crore municipal bonds on NSE
The corporation is the first urban local body in Bihar to tap the capital market for infrastructure development.
The Patna Municipal Corporation (PMC) has mobilised Rs 199.99 crore through its first municipal bond offering to fund projects at 15 locations in the state capital, according to Moneycontrol and ANI.
The bonds were issued on October 30 with a base size of Rs 100 crore, but the offering attracted bids exceeding Rs 205 crore. The 10-year bonds carry an annual coupon rate of 9.20 per cent.
The funds will be used for urban infrastructure, including commercial complexes, organised vending zones, and the redevelopment of New Market near Patna Junction. Under a Bihar government approved structure, the corporation will use internal revenue to service its debt.
At a listing ceremony in Patna on Tuesday, Bihar Chief Minister Samrat Choudhary said the move was necessary to become economically self-reliant and connect with markets. Patna Mayor Sita Sahu said the issuance would strengthen the corporation's financial capacity and reflected investor confidence.
Krishnan Iyer, Senior Vice President at the National Stock Exchange (NSE), said he hopes the initiative inspires other municipal corporations to approach public markets. He noted that institutional investors accounted for most of the investments in this issuance.