Lucknow, May 1 -- The maiden municipal bond issued by Prayagraj Municipal Corporation has been oversubscribed 4.4 times as it received bids worth Rs.221 crore against the offer size of Rs.50 crore, a senior official in the state government said and credited the success to the organisation of the Mahakumbh in the state earlier this year.

The bond was issued on the Bombay Stock Exchange's Electronic Bidding Platform and achieved a cut-off coupon rate of 8.07%-the lowest ever for a municipal bond in Uttar Pradesh. The funds raised will be directed towards the construction of a Rs.76.54 crore super-specialty hospital in Naini under a Public-Private Partnership (PPP) model, with the bond covering Rs.50 crore of the project cost,

Principal se...