Business · Markets · 2 hrs ago
Patna plans first municipal bond issue in Bihar, worth ₹200 crore
Patna Municipal Corporation plans to raise ₹200 crore through 10-year bonds, with bidding scheduled for October 30.
The issue would be the first municipal bond issued in Bihar.
Municipal bonds let local governments raise money from investors to finance civic infrastructure.
The last municipal bond issue was by Nashik in early March 2026, after which the market had been inactive.
Patna’s issue has reportedly been presold, and HUDCO and NaBFID have already submitted bids.
The yield on 10-year bonds has risen to 7.44% from 6.90% a month earlier, while Patna’s rate is expected to be 150 to 175 basis points above the benchmark.
Kanpur is also expected to seek ₹125 crore in the coming months.
Patna Municipal Corporation plans to issue 10-year municipal bonds worth ₹200 crore.
Bidding is scheduled to open on October 30.
The issue would be the first municipal bond issuance in Bihar.
The bonds have reportedly already been presold, with HUDCO and NaBFID among entities that submitted bids.
The expected rate is 150 to 175 basis points above the 10-year benchmark yield.
- Who
- Patna Municipal Corporation.
- What
- It plans to issue 10-year municipal bonds worth ₹200 crore.
- When
- Bidding is scheduled for October 30; the year is not stated in the article text.
- Where
- Patna, Bihar.
- Why
- Municipal bonds help finance civic infrastructure, but the article does not state how the proceeds from this issue will be used.
This story does not have two clearly opposing sides.
Nashik made the last municipal bond issuance.
Economic Times reported that Patna would tap the bond market.
Bidding for Patna's planned bond issue is scheduled to open.
- Issuer
- Patna Municipal Corporation
- Issue size
- ₹200 crore
- Term
- 10 years
- Bidding date
- October 30
- Expected rate
- 150 to 175 basis points above the 10-year benchmark yield
What people are saying
Entities like HUDCO and NaBFID have already given their bids. AK Capital is one of the arrangers of this paper,