CEF Insights

Discover CEF Insights where our experts unpack ten energy transition news items every month in a bite sized under one hundred and fifty word format.
January
Others

Municipal bond fund-raising trebles in 5 years; over Rs 6,000 cr mopped up

Author
Vaibhav Pratap Singh

Notable because

The ongoing and upcoming diversification of sources of debt capital across various layers of governmental structures and government-controlled companies is a welcome sign. It points to a rebalancing of market structures in the broader economy as well the financial functioning of the issuers. The state governments have increased their exposure to bonds in the past couple of years



What to look out for in the months ahead

The government'’s broadening of the debt product base could, in turn, widen the investor base and create benchmarks for various issuances such as the InvITs, AIFs, and Muni bonds. States may even begin tapping the masala bond market.

The move could help iron out potential barriers to corporates broadly adopting these instruments.