In this episode, Kashish sits down with Rajashree Murukute, Senior Director at CARE Ratings, to understand why India’s municipal bond market hasn't taken off and what it will take to mature.
We cover:
- How rating municipalities differs from corporates, why cities struggle with data disclosures, and why pooled finance may be the only way forward for smaller urban bodies.
- It also covers market liquidity, policy incentives, escrow structures, green bonds, retail participation, and the critical need for actual capital deployment.
Timestamps
0:00 — Intro
5:45 — How rating a municipality differs from rating a corporate
9:48 — Data collection challenges for ULBs
12:48 — Cash-based vs accrual-based accounting issues
17:10 — Cost of raising funds
18:35 — Who actually buys municipal bonds
23:20 — Credit enhancements, escrow accounts & sovereign guarantee
31:55 — Green municipal bonds explained
45:52 — What needs to change in the next 10 years