Vadodara to raise Rs 200 cr from municipal bonds by July

The increasing use of municipal bonds by civic bodies signals a shift towards diversified funding for urban development. This could provide a stable revenue stream for financial institutions facilitating these issuances.

• •Vadodara civic body aims to raise Rs 200 crore through municipal bonds.
• •The fundraising is expected to be completed by July this year.
• •This follows a trend of civic bodies in India, like PCMC, raising funds via municipal bonds.
• •Risk flag: Interest rate fluctuations could impact bond attractiveness.
• •Risk flag: Creditworthiness of municipal bodies remains a key risk for investors.