Lucknow, May 9 -- Varanasi Nagar Nigam (VNN) has entered the municipal bonds club by raising Rs 50 crore through its first municipal bond issue at a coupon rate of 8.01%, marking the lowest rate secured by any municipal corporation in Uttar Pradesh till date. The bond issue, conducted via private placement on the National Stock Exchange's Electronic Bidding Platform, attracted substantial investor interest, making Uttar Pradesh the first state in India to have five Urban Local Bodies (ULBs) - Lucknow, Ghaziabad, Agra, Prayagraj, and now Varanasi - successfully raise funds through municipal bonds. Strategic infra dev for ancient city The funds raised will finance two major revenue-generating projects aimed at enhancing infrastructure in Varanasi, one of India's most visited pilgrim destinations, which attracts millions of domestic and international tourists annually. "Varanasi being a premier spiritual and cultural destination requires world-class infrastructure that preserves its ancient character while meeting modern needs," said Amrit Abhijat, principal secretary, urban development department. "The overwhelming investor response to these bonds reflects growing confidence in the city's economic potential and our governance structures. With this milestone, Uttar Pradesh has established itself as the national leader in municipal financing with five ULBs successfully tapping the bond market." The first project involves developing a hotel complex with underground parking near Sigra Stadium, estimated to cost Rs 40.52 crore with Rs 25 crore allocated from the bond funds. The second project will create a market complex with underground parking at Lahurabir Road at an estimated cost of Rs 34 crore, also receiving Rs 25 crore from the bond proceeds....