The Pune Metropolitan Region Development Authority (PMRDA) is planning to make its maiden municipal bond issue to part-fund the Rs 17,412-crore 129-km eight-lane ring road project in Pune. This will be the second municipal bond issue from Pune. The Pune Municipal Corporation had earlier raised Rs 200 crore through· a municipal bond issue to fund a water project. PMRDA CEO Kiran Gitte said they would be raising Rs 1,000 crore through their proposed municipal bond issue. PMRDA has approached Icra for credit rating and hopes to get the ratings in two months. Gitte further said they are looking to start work to tap the bond market in January 2018.
This PMRDA is expecting an A+ rating considering its land bank, opportunities for monetisation of land and revenues from the development of townships along the proposed ring road. The PMRDA has started work on the proposed ring road with tenders of Rs 650 crore for the first stretch of 33.4 km along with tunnels, railway over bridges and river bridges. There are 19 townships planned along this stretch of the ring road. Work on five township schemes will also start.· Apart from the proposed municipal bond issue, PMRDA is looking at raising another Rs 8,000 crore from multilateral agencies. Talks are on with JICA, Korean and Canadian funding agencies, Gitte said.