Nashik Corporation plans ₹200 crore bond issue for civic projects by 2023

A financial first for Maharashtra’s cities? Nashik’s bold bond strategy slashes borrowing costs—and could inspire others. See how incentives make it nearly interest-free.

, and Administrator

2025 December 3 . 7:20 AM

1 min read

The picture is taken on the street of a city. In the center of the picture there are shops, tents,... — The picture is taken on the street of a city. In the center of the picture there are shops, tents, umbrellas, auto rickshaw, motor bike, people and many other objects. In the background there are buildings. In the foreground there are waste papers on the road.

Nashik Corporation plans ₹200 crore bond issue for civic projects by 2023

Nashik Municipal Corporation is preparing to raise another Rs 200 crore through municipal bonds by February 2023. This follows the success of its first bond issue, which was fully subscribed by three major financial institutions. The funds will support key infrastructure projects and future city planning.

The corporation’s initial Rs 200 crore bond issue was oversubscribed by four times, with participation from institutions like the National Bank for Financing Infrastructure and Development. SEBI, credit rating agencies, investment banks, and underwriters were also involved in structuring the deal. Despite a coupon rate of 7.8%, the corporation considers the borrowing virtually interest-free due to government incentives totaling over Rs 94 crore, including Rs 26 crore from the AMRUT scheme.

The new bond issue will help Nashik finance major civic projects while expanding its funding options. With government incentives reducing effective borrowing costs, the corporation aims to strengthen infrastructure ahead of key events. The move also sets a precedent for other Maharashtra cities exploring similar financial routes.