Mumbai civic body to raise Rs 9,500 crore through record bond issue

The Brihanmumbai Municipal Corporation (BMC) is preparing to raise Rs 9,500 crore through what is expected to be India’s largest municipal bond issue, marking a significant step in financing large-scale urban infrastructure projects.

The civic body has shortlisted AK Capital, Tipsons and Trust Investment Advisors as merchant bankers to manage the bond issuance process, reported The Times of India.

The proposed fundraising is expected to support key infrastructure and civic development projects across Mumbai.

Municipal bonds allow urban local bodies to raise capital directly from investors instead of relying solely on government grants or tax revenues.

The proposed issue is expected to strengthen BMC’s ability to fund major infrastructure works while diversifying its financing sources.

If launched as planned, the issue will set a new benchmark for municipal fundraising in India and could encourage other cities to tap the bond market for financing urban development projects.