Patna lists Bihar’s first municipal bond, raising ₹199.99 crore

Patna Municipal Corporation listed Bihar’s first municipal bond on the National Stock Exchange, raising ₹199.99 crore.

The bonds will finance 15 projects in Patna, including market-area redevelopment and improvements to civic services.

A municipal bond lets a city raise money from investors to pay for public projects.

Patna’s issue had a base size of ₹100.03 crore and an additional greenshoe option of ₹99.96 crore; investor interest was nearly twice the base size.

The bonds carry a 9.20% coupon rate and have an AA (Stable) rating.

Cities are increasingly using bonds to fund infrastructure, and several other Indian municipal corporations are exploring this route.