Varanasi Nagar Nigam raises Rs 500 million through municipal bonds

Varanasi Nagar Nigam has raised Rs 500 million through its first issuance of municipal bonds. The funds were raised at a coupon rate of 8.01 per cent, the lowest rate ever secured by any municipality in Uttar Pradesh (UP). The bonds were issued on a private placement basis. The proceeds will be utilised for two major revenue-generating projects: a hotel complex with underground parking near Sigra Stadium, estimated to cost Rs 405.2 million, of which Rs 250 million will be allocated from the bond proceeds; and a market complex with underground parking at Ladurabir Road, estimated at Rs 340 million, with Rs 250 million funded through the bond issue. With this development, five urban local bodies in UP have now tapped the bond market.