Rajkot Municipal Corporation's Rs. 100 Crore Bond Issue Sets New Benchmark

The Rajkot Municipal Corporation (RMC) has successfully raised Rs. 100 crore via municipal bonds, oversubscribed by 4.95 times, signaling robust investor trust. The proceeds will upgrade urban infrastructure in Rajkot, reflecting RMC's fiscal prudence and innovation in governance, aligned with India's growing urban development needs.

In a significant stride for urban infrastructure, the Rajkot Municipal Corporation (RMC) has secured Rs. 100 crore through a highly successful municipal bond issue. Notably, the offering was oversubscribed by nearly five times, underscoring solid investor confidence.

The Rs. 100 crore bond, with a five-year tenure at a 7.90% interest rate, earned an AA rating from CRISIL and was launched via the National Stock Exchange's Electronic Bidding Platform. The Government of India's Rs. 13 crore interest subsidy for such bonds is expected to reduce RMC's borrowing costs.

Funds are earmarked for vital water supply and sewage projects, catering to Rajkot's growing infrastructure needs amid rapid expansion. This initiative supports RMC's ongoing mission to enhance service delivery in response to the city's dynamic growth.

(With inputs from agencies.)