CURRENT AFFAIRS

Detailed explanation-1: -Indore Municipal Corporation (IMC) has launched India’s first public issue of municipal bonds intending to raise up to Rs 244 crore to fund a solar power project.

Detailed explanation-2: -The first bond issue was launched in India by Bengaluru municipal corporation (MC) in 1997, followed by Ahmedabad MC in 1998. Between 1997 and 2013, only 22 issues for municipal bonds (munis) were launched – raising Rs 1353 crores in total, a paltry figure compared to the overall finances of MCs.

Detailed explanation-3: -Municipal bonds (munis) are debt securities issued by state and local governments. These can be thought of as loans that investors make to local governments, and are used to fund public works such as parks, libraries, bridges and roads, and other infrastructure.

Detailed explanation-4: -Trading (as of January) $12.5 billion ADV, +21.0% Y/Y. Outstanding (as of 2Q22) $4.0 trillion, +0.2% Y/Y.

Detailed explanation-5: -Munis can generally be classified into two camps-general obligation bonds and revenue bonds. General obligation, or GO, bonds are backed by the general revenue of the issuing municipality, while revenue bonds are supported by a specific revenue source, such as income from a toll road or sewer system.