India to use municipal bonds for $900B upgrades through 2031
India is gearing up for a huge upgrade of its cities (think better water, sewage, and infrastructure) by tapping into the municipal bond market.
Securities and Exchange Board of India (SEBI), the market regulator, is encouraging city governments to team up and raise funds together for urban infrastructure that may cost up to $900 billion through 2031, aiming to help India reach developed nation status by 2047.
Tuhin Kanta Pandey stresses municipal creditworthiness
Right now, municipal bonds barely make a dent in India's overall bond sales, less than 1%, compared to 7% in the US
SEBI says the key is making sure city finances are solid and project details are clear.
As SEBI Chairman Tuhin Kanta Pandey puts it, he's focused on municipalities' creditworthiness, governance, transparent disclosures, and predictable project cash flows so investors feel confident backing these projects.