- Vadodara Municipal Corporation issues Asia’s first green municipal bond, raising 1 billion rupees.
- The bond aims to enhance liquid wastewater management infrastructure across the city.
Vadodara Municipal Corporation in Gujarat, India, issues Asia’s first certified green municipal bond. The bond aims to enhance liquid wastewater management infrastructure across the city.
It attracts bids from investors with a semi-annual coupon of 7.90 per cent. The issuance marks a watershed moment for sustainable municipal finance.
Sean Kidney, CEO of Climate Bonds Initiative, praises the move. He highlights its role in driving critical investments aligned with global climate goals.
The bonds receive an AA+ rating from India Ratings. They also secure a green security certificate from the Climate Bond Initiative.
SBI Capital Markets and Tipsons Consultancy Services arrange the bond issue. Officials from the US Treasury Department provide technical assistance to the civic body.
This assistance aids in the successful fundraising process. The Vadodara civic body had previously accessed the bond market in 2022.
They raised 1 billion rupees with a semi-annual coupon of 7.15 per cent. This milestone underscores the civic body’s commitment to advancing sustainable development agendas.
They continue to pioneer innovative financing mechanisms for positive change.
($1 = 82.8600 Indian rupee)