Patna Municipal Corporation (PMC) has listed Bihar’s first-ever municipal bond on the National Stock Exchange (NSE), raising ₹199.99 crore for urban infrastructure projects in the Sate. The funds raised will be used to finance 15 projects aimed at redeveloping market areas and improving civic services across the city.
The issue, which had a base size of ₹100.03 crore and a greenshoe option of ₹99.96 crore, received investor interest at nearly twice its base issue size. The bonds carry a coupon rate of 9.20 per cent and are rated AA (Stable) by rating agencies.
Municipal bond issuances have gathered pace in 2026, reflecting growing efforts by urban local bodies to diversify funding sources for infrastructure development.
Among the key issuances this year were Tiruppur City Municipal Corporation’s ₹100 crore bond issue and Coimbatore City Municipal Corporation’s ₹150.85 crore issuance in January 2026.
This was followed by Tiruchirappalli City Municipal Corporation’s ₹100 crore bond issue in February 2026 and Nashik Municipal Corporation’s ₹200 crore fundraising through municipal bonds in March 2026.
Several other cities, including Ahmedabad Municipal Corporation, Brihanmumbai Municipal Corporation, Navi Mumbai Municipal Corporation and Thane Municipal Corporation, are also exploring bond market fundraising, reflecting rising investor appetite for municipal debt and highlighting the growing role of capital markets in financing urban infrastructure projects.
Published on November 10, 2026
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