Patna Municipal Corporation (PMC) has become the first urban local body in Bihar to raise funds through municipal bonds, mobilising nearly Rs 200 crore from the capital market to undertake infrastructure development projects at 15 locations across the state capital. The listing was marked by a ceremony at Taj City Centre in Patna on Tuesday, in the presence of Bihar Chief Minister Samrat Chaudhary.

Source: ANI via Daily Prabhat

The corporation raised Rs 199.99 crore through its maiden municipal bond issuance on October 30, against a base issue size of Rs 100 crore. The offering received bids exceeding Rs 205 crore, reflecting strong investor interest. The bonds carry an annual coupon rate of 9.20 per cent and have a tenure of 10 years.

Source: ANI via Devdiscourse

Rs 199.99 croreAmount raised
9.20%Annual coupon rate
10 yearsBond tenure
15 locationsPatna projects to be funded

The proceeds will be used to develop urban infrastructure at 15 locations across Patna, including organised vending zones, commercial complexes and other public facilities. The proposed redevelopment of New Market near Patna Junction is among the projects identified under the initiative. Patna Press reported that the issue carried 'IND AA/Stable' and 'ACUITE AA/Stable' ratings and that A K Capital Services acted as the sole merchant banker.

Source: Patna Press

What the mayor and the NSE said

Patna Mayor Sita Sahu described the issuance as a significant achievement that would strengthen the corporation's financial capacity. "The development of any city is not merely about preparing plans. It also requires financial strength, vision and the determination to implement those plans on the ground," she said, adding that the fundraising reflected growing investor confidence in the corporation.

Krishnan Iyer, Senior Vice President at the National Stock Exchange, said he hoped Patna's successful issuance would encourage other municipal corporations to approach the public markets, noting that the Union Finance Minister has introduced incentives for civic bodies through the AMRUT scheme. Under the financing arrangement approved by the Bihar government, PMC will meet its debt repayment obligations through its internal revenue sources.

According to Securities and Exchange Board of India (SEBI) data cited in the reports, 31 municipal bond issuances raised Rs 4,540.34 crore between 2017 and September 2026, undertaken by 22 municipal corporations across seven states — Bihar has now become the eighth state to access the municipal bond market under the regulatory framework.