Pune Municipality becomes the 1st civic body in the nation to raise money by bonds on BSE | pune news | Hindustan Times
Today in New Delhi, India
Oct 24, 2017-Tuesday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Pune Municipality becomes the 1st civic body in the nation to raise money by bonds on BSE

PMC has taken major step by raising Rs 200 crores by floating bond for 24x7 water supply to the city. This is also part of their project in the Smart City Mission.

pune Updated: Jun 22, 2017 14:46 IST
Prachi Bari
Pune Municipality gives re-entry of municipal bonds after 14 years becoming the first civic body in the country to raise money by issuing bonds on Bombay Stock Exchange
Pune Municipality gives re-entry of municipal bonds after 14 years becoming the first civic body in the country to raise money by issuing bonds on Bombay Stock Exchange (HT PHOTO)

The Pune Smart City anniversary is scheduled on 25th of June, but PMC has plans to organise the program early next month. In the mean time PMC has taken major step by raising Rs 200 crores by floating bond for 24x7 water supply to the city.

The bond offering of Rs 2,300 is hailed as the India’s largest municipal bond issue till date. Pune is the second largest corporation in Maharashtra earning its revenues through Property taxes and local body taxes. 

PMC has a long-term credit rating of ‘AA+’. PMC also plans to use the funds for a 24*7 water supply project for the city. This is also part of their project in the Smart City Mission. 

According to sources, in a joint meeting called by the ministry of urban Development and the ministry of economic affairs besides Pune and Ahmedabad, the municipalities of Jaipur, Kakinada and a few others have also been asked to prepare for bond offerings. 

The PMC bond will be privately placed with domestic as well as overseas investors. Pune municipality have became the first civic body in the country to raise money by issuing bonds on Bombay Stock Exchange. This also marks the re-entry of municipal bonds after 14 years, which is being seen as the beginning of resurgence in the municipal bond market in India.