India’s First Municipal Bond Index:
National Stock Exchange (NSE) launched India’s first municipal bond index- IBMX
- It will track the performance of bonds issued by municipal corporations.
- It has investment-grade credit ratings (AA category)
- The index includes municipal bonds issued as per the Securities Exchange Board of India Issue and Listing of Municipal Debt Securities Regulations, 2015
- A municipal bond is a type of bond issued by a local government or municipality, such as a city, county, or state.
- When these entities need to raise money to fund projects like building schools, roads, or other public infrastructure, they can issue bonds as a way to borrow money from investors.
- The municipal bond market has seen a three-fold rise in fundraising since 2017 (to about 6000 crores in 2022)
- The first municipal bond in India was issued by the Ahmedabad Municipal Corporation in 1998
- Indore issued India’s first-ever municipal green bond recently