The Pune Municipal Corporation (PMC) has become the first local body in the country to issue municipal bonds in nearly one and a half decades, raising Rs 2 billion for the smart city project. Domestic insurers, pension funds and large state-owned banks invested in the PMC bonds. The issue, handled by SBI Capital Markets, was oversubscribed six times, having received subscriptions worth Rs 12 billion. The bonds, rated AA+, offer 7.59 per cent, about 30-40 basis points more than bonds sold by state governments.In the first tranche of the five-year bond programme the corporation has raised a total of Rs 22.64 billion. It intends to use the proceeds for its water metering project, which is estimated to cost about Rs 35 billion. The next issue is planned for March 2018.