Patna Municipal Corporation raises Rs 199.99 crore through Bihar's first municipal bond
The Patna Municipal Corporation has tapped the capital market to fund infrastructure projects across 15 locations in the state capital.
The Patna Municipal Corporation (PMC) has raised Rs 199.99 crore through a municipal bond issue, becoming the first urban local body in Bihar to use this financing mechanism, according to India Today. The bonds were issued on October 30 through a private placement on the National Stock Exchange (NSE) Electronic Bidding Platform.
Against a base issue size of approximately Rs 100 crore, investor demand exceeded Rs 205 crore. The securities carry an annual coupon rate of 9.2 per cent and have a 10-year tenure. The bonds were admitted to trading on the NSE from November 5.
The proceeds will be used to develop infrastructure at 15 locations in Patna. Projects include the redevelopment of New Market near Patna Junction, organised vending zones, commercial complexes, parking facilities, marriage halls, and improved sanitation and solid waste management systems.
Bihar Chief Minister Samrat Choudhary attended the listing ceremony in Patna on Tuesday. He stated that the issuance was necessary to become economically self-reliant and connect with India's market. He also directed that the proceeds be invested in projects capable of generating regular income.
Patna Mayor Sita Sahu said the issuance was an important step towards strengthening the corporation's financial capacity. Patna Municipal Commissioner Yashpal Meena noted that the strong investor response reflected confidence in the corporation's financial position and the development potential of Patna.
According to Securities and Exchange Board of India (SEBI) data, 31 municipal bond issuances raised Rs 4,540.34 crore across 22 urban local bodies in seven states as of September 30, 2026. Bihar is the eighth state to enter this market.