Mumbai: Patna Municipal Corporation (PMC) has achieved a milestone with Bihar's first municipal bond listing on the National Stock Exchange (NSE), raising nearly Rs 200 crore to finance urban infrastructure projects.
The listing ceremony was held in Patna on November 10 in the presence of Bihar Chief Minister Samrat Choudhary and senior government officials.
Strong Investor Response
The bond issuance had a base size of Rs 100.03 crore and a green-shoe option of Rs 99.96 crore.
The private placement attracted subscriptions exceeding twice the base issue size from institutional investors, indicating strong demand for municipal debt instruments.
The proceeds will finance 15 redevelopment projects worth ₹199.99 crore across Patna's market areas.
These projects aim to improve urban services, public convenience and economic efficiency.
The issuance also marks Bihar's entry into capital market financing for municipal infrastructure development.
CM Highlights Revenue Generation
Addressing the ceremony, Chief Minister Samrat Choudhary described the listing as an important achievement for Bihar's economic development.
He emphasised that municipal bond proceeds should finance projects capable of generating regular revenue.
Choudhary encouraged other municipal corporations to explore similar fundraising opportunities.
He also urged government departments to utilise their assets more effectively and consider public-private partnership models for infrastructure development.
According to the Chief Minister, revenue-generating projects could strengthen municipal finances after debt repayment.
NSE Promises Support
NSE Managing Director and CEO Ashishkumar Chauhan congratulated the Bihar government and PMC on completing the landmark transaction.
He recalled that the initiative followed an NSE outreach programme involving a Bihar government delegation visiting Mumbai last year.
Chauhan reaffirmed NSE's commitment to helping urban local bodies access capital markets for sustainable infrastructure development.
The ceremony was attended by senior state officials, including Patna Mayor Sita Sahu and Municipal Commissioner Yash Pal Meena.
The listing represents a significant step towards diversifying funding sources for Bihar's urban development.
