Pimpri Chinchwad Municipal Corporation (PCMC) announced on has successfully raised Rs 200 crore through its inaugural municipal bonds, which will mature in five years. A municipal bond is basically a debt instrument issued by a municipal corporation under municipal laws with the permission of the respective state government.
The funds obtained from the bond issuance will be utilized for the development of the Mula river, specifically from Wakad Bypass to Sangvi Bridge, as part of the Pune River Rejuvenation Project, according to PCMC.
The corporation has set an 8.15% coupon rate on these bonds. Furthermore, PCMC will be eligible to receive a Rs 26 crore incentive from the Union Government for successfully issuing its first municipal bond.
Earlier this year, Indore Municipal Corporation also raised capital though bonds issue. It seems Bonds market is skewing for the retail players too. Do share your thoughts!