M’luru likely to get US support for municipal bonds

Team Udayavani, Feb 24, 2020, 10:47 AM IST

Mangaluru: Mangaluru has been selected as one of the six cities to receive technical support from the US Department of Treasury to issue municipal bonds.

Municipal bonds are long-term financial instruments with a low rate of interest open to investors from across the globe. These bonds are used by municipal governments to fund infrastructure and other development projects in their cities. The interest on these are paid by the revenue generated from the projects.

Along with Mangaluru, Mysuru, Rajkot, Vadodara, Lucknow, and Pimpri Chinchwad have been selected by the Ministry of Housing and Urban Affairs and NITI Aayog for the technical cooperation with the US.

The US Treasury Department maybe signing the Memorandums of Understanding (MoU) with these six cities during President Trump’s two-day visit starting on February 24.

Pune was one of the first city to have received such support from the US Treasury Department in 2017 on a pilot basis.

Many US cities have since long been raising funds for their public works through issuing bonds and are now extending guidance to these Indian cities.