Rajkot's Bold Move: Municipal Bond Success

Rajkot Municipal Corporation (RMC) achieved a major milestone by raising Rs. 100 crore through an oversubscribed municipal bond issue. This reflects strong investor confidence in RMC's transparent and innovative urban governance. The funds will finance crucial water and sewerage projects, enhancing Rajkot's expanding infrastructure.

The Rajkot Municipal Corporation (RMC) has marked a significant achievement by successfully raising Rs. 100 crore through a municipal bond issue. This overwhelming response, with the bond being oversubscribed by 4.95 times, underscores the robust investor confidence in RMC's fiscal policies and innovative urban governance.

Issued with a five-year tenure at a competitive interest rate of 7.90%, the bond has been rated AA by CRISIL, highlighting the corporation's strong financial health. The initiative is further supported by a Rs. 13 crore interest subsidy from the Government of India, aimed at making the financing more sustainable.

Proceeds from this bond will be invested in essential urban infrastructure projects, including the development of water supply and sewage systems in newly integrated areas of Rajkot, responding to the rapid population growth and urban expansion demands.

(With inputs from agencies.)