Kochi Mayor V. K. Minimol
| Photo Credit: H. VIBHU
The Kochi Corporation is set to invite Expressions of Interest (EoIs) from consultants later this month to assist in the issuance of municipal bonds to fund its big-ticket development projects.The Corporation has been holding discussions with multiple agencies with expertise in handling the critical process elsewhere. The aim is to identify the challenges involved and assess the long-term benefits in the Kochi-specific development context. Discussions were held with two such agencies on Thursday (September 3, 2026).“We have been in consultations with regulatory bodies such as the Securities and Exchange Board of India (SEBI) as a prelude to the process. The Kochi Corporation is eligible to issue bonds worth ₹500 crore. Initially, we are exploring the prospects of issuing municipal bonds worth ₹150 crore to finance development and infrastructure projects, along with green bonds worth another ₹150 crore to support environment-friendly and climate change mitigation initiatives. The proposal to invite EoIs will be included in the agenda for approval in the next council meeting,” said Mayor V.K. Minimol.To boost credit ratingThe Corporation has initiated steps to boost its credit rating ahead of the bond issue, beginning with streamlining its asset register and maximising revenue from all potential sources.Municipal bonds were identified as a preferred funding mechanism during the tenure of the previous Left Democratic Front (LDF) council. M. Anilkumar, former Mayor and co-chairperson of the Kerala Urban Policy Commission (KUPC) constituted by the LDF government, noted that initial steps such as incorporating municipal bonds into the State government’s urban policy were taken during the previous administration, thereby providing political clarity on the matter.“Credit rating is critical in issuing bonds, and the previous LDF council had taken steps to set its financial statements in order and implement a degree of financial discipline through measures such as regulating expenditure, reducing dues to contractors, and eliminating the concept of general funds. We had also held consultations with organisations of chartered accountants, which led us to realise that an experienced professional agency was required to assist in the process,” he said.New postsIt was further identified that issuing municipal bonds necessitated the appointment of a dedicated team, for which new posts had to be created. Mr. Anilkumar, however, cautioned against rushing into the process without identifying attractive projects, stressing that funds raised through bonds could not be used for day-to-day expenses.V.A. Sreejith, LDF parliamentary party leader, said that while the Opposition was not against the concept, concerns remained about who would preside over the process. “Our stand is that a team of Corporation officials led by the secretary should oversee the entire process to safeguard the interests of the Corporation,” he said. Published - September 03, 2026 04:19 pm IST
