Municipal Securities

The Municipal Securities Act, 2023 (MSA) allows municipalities to issue securities to raise funds for various public betterment purposes, which include:

• Infrastructure developments such as roads, streets, and drainage work.
• Construction of or reconstruction or improvements of public buildings and facilities.
• Emergency borrowing to support local or national emergency or natural disaster.
• Payment of operational expenses.
• Retirement of any existing debt or liabilities.

Before a local authority or municipality can start the process with the FSC, they must first get approval of the Minister to borrow through the issuance of municipal securities. The local authority or municipality must provide the Minister’s approval letter to the FSC. This letter must also be disclosed in the prospectus.