Patna: Patna Municipal Corporation (PMC) on Friday raised over Rs 199 crore through its maiden municipal bond issue, becoming the first urban local body in Bihar to tap the capital market through this route. The issue, which had a base size of Rs 100 crore, was oversubscribed more than twice, with investor demand exceeding Rs 205 crore.According to a PMC press release, the bonds were issued through private placement on the National Stock Exchange’s (NSE) Electronic Bidding Platform (EBP), offering investors a 9.20% annual return.Municipal commissioner Yashpal Meena said the success of the issue reflected PMC’s financial strength and institutional credibility. “Investor demand of over Rs 205 crore demonstrates confidence in the corporation and the development potential of Patna. The funds will accelerate the development of urban infrastructure and expansion of civic amenities and public services across the city,” he said.The bonds received ‘IND AA/Stable’ and ‘ACUITE AA/Stable’ ratings from India Ratings and Research and Acuite Ratings and Research, respectively, indicating low credit risk and a high degree of safety in servicing financial obligations.The funds will be used to develop 15 new vending zones and redevelop key commercial hubs, particularly markets around Patna Junction. Plans include modern shopping complexes, organised vending zones, basement parking and improved circulation systems to reduce congestion. Fire safety, sanitation, solid waste management, rainwater harvesting and solar power facilities will also be incorporated.Mayor Sita Sahu described the bond issue as a landmark achievement for the civic body. “The funds will be utilised for the development of Patna and the improvement of civic amenities and public services. We are committed to ensuring complete transparency, accountability and responsible utilisation of the funds,” she said.A K Capital Services Ltd was the sole merchant banker for the issue, which is proposed to be listed on the NSE. PMC will also receive an incentive of around Rs 26 crore from the Union govt for issuing the municipal bonds as part of a scheme to encourage other cities to raise money through such bdebt.The civic body is planning commercial complexes at New Market, Khetan Market, Arya Kumar Road and A N College, besides integrated civic and commercial hubs, urban green spaces and a waste-to-energy plant to strengthen its long-term revenue base.
