Ahmedabad and Vadodara Municipal Corporations set to raise Rs 300 crore via Green Municipal Bonds

The Ahmedabad and Vadodara Municipal Corporations are gearing up to collectively raise Rs 300 crore through green municipal bonds in January, according to sources familiar with the matter. The Ahmedabad Municipal Corporation is planning to raise Rs 150 crore to Rs 200 crore through bonds with a five-year maturity period, while the Vadodara Municipal Corporation aims to secure Rs 100 crore via five-year green bonds.

“The Ahmedabad Municipal Corp has already filed the papers for the issue, and Vadodara is expected to file this week,” stated one source. The bidding dates have not been finalized, and officials are currently in discussions with merchant bankers and investors.

“The funds raised through these bonds will be utilized for green initiatives,” added the sources. Municipal bonds, akin to corporate bonds, are issued by civic bodies to fund urban infrastructure projects. Investors in municipal bonds are assured a specified interest rate and the return of the principal amount upon maturity. Municipal bonds are commonly issued by states, cities, counties, utility providers, transit authorities, school districts, and hospitals.