Mumbai BMC plans 1st-ever ₹9500cr municipal bond sale by 2027
Mumbai's city government (BMC) is gearing up for its first-ever municipal bond sale, hoping to raise a massive ₹95 billion ($992 million) by early 2027, the largest ever by any Indian city.
The goal? To fund big projects while moving away from the usual bank loans.
Indian cities tap municipal bonds
The BMC wants the first sale by March 2027, joining a growing trend as more cities tap into municipal bonds for infrastructure upgrades.
India's muni bond market has already raised ₹2 billion so far this fiscal year after a ₹17.5 billion record issuance in the previous fiscal year, and Monika Kalia, deputy MD and CFO at NaBFID, said, "If some large issuances go through, we could also see the sales hitting ₹100 billion this fiscal year."
With more investor interest and new transparency rules, local governments are looking at bonds as a fresh way to power up their cities.