Bihar gears up to enter the municipal bond market

By

, ET BureauLast Updated: Jul 03, 2026, 06:04:00 AM IST

Synopsis

Bihar is poised to enter the municipal bond market with Patna Municipal Corporation planning to raise ₹200 crore over 10 years, marking the nation's first civic bond issue of 2026-27. Meanwhile, the Brihanmumbai Municipal Corporation is nearing the finalization of merchant bankers for its ₹1,000 crore fundraising this fiscal year. Ahmedabad Municipal Corporation is also in discussions to secure a similar amount.

Mumbai: Bihar is set to enter the municipal bond market, with its first civic body bond issue expected in the next 40-50 days. The Patna Municipal Corporation is expected to raise ₹200 crore for a tenure of 10 years, according to people aware of the matter.

This will also mark the first municipal bond offering in the country in 2026-27.

Separately, the Brihanmumbai Municipal Corporation (BMC) is in advanced stages of finalising merchant bankers, the people said. The BMC is expected to raise ₹1,000 crore in this financial year, as reported by ET in April.

Besides BMC, the Ahmedabad municipal corporation is in talks to raise ₹1,000 crore.

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