Vadodara became the second city in India to issue a municipal bond with assistance from the US Treasury Department’s Office of Technical Assistance. The US Embassy and US Treasury officials joined counterparts from India’s Ministry of Housing and Urban Development, the city of Vadodara, and the Securities and Exchange Board to celebrate the successful issuance of Vadodara’s first-ever municipal bond. Pune was the first city to issue such a bond in 2017.
Vadodara issued first-ever municipal bond- Key Points
- The bond will provide funds for infrastructure projects in Vadodara.
- The bond was oversubscribed by 10 times and was priced at a low yield of just 7.15%.
- A written case study will also be published sharing lessons learned from Vadodara’s bond issuance that will benefit other Indian cities issuing their municipal bonds in the future.
- Municipal finance can help to pay for vital capital projects including roads, energy, water, sanitation, and other essentials.
- Municipal finance also represents a form of empowerment. As cities start to finance their own projects, municipal officials are called upon to be good financial stewards, who make the best possible use of funding to achieve the best possible results for those they represent.