Kerala Munis to raise bonds

The Kerala State Budget 2025-26 has announced that the municipal corporations in Kerala will raise bonds of Rs. 1000 crore. These bonds are expected to fund projects like IT parks, Commercial Centres, Roads, Waste Management and Water Supply Schemes.

No municipality in Kerala has so far tapped the bond markets. Of the 6 municipal corporations in Kerala, Thiruvananthapuram , Kochi and Kozhikode municipal corporations are the ones likely to raise municipal bonds.

Kerala municipalities score relatively high on transparency and they can definitely look at municipal bonds as a financing alternative.