Patna Municipal Corporation lists first Bihar municipal bond on NSE
The civic body raised Rs 199.99 crore to fund infrastructure projects at 15 locations across the state capital.
The Patna Municipal Corporation (PMC) has become the first urban local body in Bihar to tap the capital market by listing municipal bonds on the National Stock Exchange (NSE), according to The Tribune and ANI.
The corporation raised Rs 199.99 crore through its initial bond issuance on October 30, surpassing its base issue size of Rs 100 crore. 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 at 15 sites in Patna, including commercial complexes, organised vending zones, and the redevelopment of New Market near Patna Junction.
Patna Mayor Sita Sahu attended the listing ceremony in Patna on Tuesday alongside Bihar Chief Minister Samrat Chaudhary. Sahu said the issuance would strengthen the corporation's financial capacity and support city development.
Krishnan Iyer, Senior Vice President at the NSE, said the move might inspire other municipal corporations to use public markets for fundraising. He noted that the Union Finance Minister has introduced incentives for such bodies through the AMRUT scheme.
Under the Bihar government's financing arrangement, the PMC will use its internal revenue sources to meet debt repayment obligations.