The issue, handled by SBI Capital Market, was oversubscribed six times, having received subscribtions worth Rs 1,200 crore. The bonds, rated AA+, one of the top ratings, offers 7.59%, about 30-40 basis points more than bonds sold by state governments.
Domestic insurers, pension funds, and large state-owned banks invested the PMC bonds.
PMC proposes to increase water tax to raise revenue.
For the bond-sale, the municipal body even consulted the treasury department in the US, where such bonds, known as “muni bonds”, have a strong market.