GMC’s Bond Issue Oversubscribed Nine Times, Paving the Way for Urban Financing Models
BILKULONLINE
Gandhinagar, June 25:In a landmark step toward financial empowerment and urban development, the Gandhinagar Municipal Corporation (GMC) successfully listed its maiden ₹25 crore municipal bonds on the National Stock Exchange (NSE) today. The listing ceremony, held at the GIFT City Club in Gandhinagar, was graced by Gujarat Chief Minister Bhupendra Patel, Mayor of Gandhinagar Miraben Patel, and other dignitaries.
The bonds, issued with a competitive coupon rate of 7.65%, garnered an enthusiastic response from investors—being oversubscribed nine times within just an hour of opening, with bids totaling ₹225 crore. The issue received a credit rating of ‘AA-’ from CRISIL and ‘AA’ from CARE Edge.
With this move, GMC becomes the fifth municipal corporation in Gujarat and the first among the newly formed ones to raise funds via capital markets. It is also the 17th municipal body in India to issue such bonds.
Proceeds from the bond issue will fund vital road development projects under the AMRUT scheme, while GMC is also expected to benefit from a ₹3.25 crore central government interest subsidy.
Mayor Miraben Patel highlighted the achievement as a symbol of the city’s commitment to transparency and urban upliftment. Chief Minister Bhupendra Patel lauded GMC’s efforts in adopting fiscal discipline and innovative financing to boost infrastructure growth.
The successful listing sets a strong precedent for smaller municipal bodies across India to explore capital market instruments as a sustainable financing option.