Rajkot: The Rajkot Municipal Corporation (RMC) will issue bonds worth ₹100 crore ahead of Diwali. The civic body plans to use the funds for development projects, with the move being an effort to achieve financial independence. Last week, it submitted a placement memorandum to SEBI and NSE.

With this issue, the Rajkot Municipal Corporation will become the first civic body to issue public bonds. The bond bidding will take place on October 16, open to Qualified Institutional Buyers (QIB) and non-QIBs registered on the NSE. Investors selected through the bidding will receive their bonds on October 18, and the bonds will be listed on October 21.

RMC received a favorable AA rating from credit agencies, and municipal commissioner D P Desai stated that central government incentives would help reduce interest costs. RMC expects to pay between ₹40 crore to ₹45 crore in interest over five years, with a ₹13 crore incentive lowering the cost to match commercial bank rates. Half of the principal amount will be repaid within five years.

SEBI-authorized entities such as pension funds, public sector units, trusts, and NBFCs will invest in the bonds. RMC has identified eight projects, including drinking water pipelines and sewage systems, for the funds.DeshGujarat