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First Green Municipal Bond – Chennai
August 2 , 2025
14 hrs 0 min
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- The Greater Chennai Corporation (GCC) Council has passed a resolution to raise ₹205.64 crore.
- It was by issuing its first Green Municipal Bond to fund major environment-friendly infrastructure projects.
- The resolution said that the GCC issued a municipal bond listed on the National Stock Exchange on May 22.
- That raised ₹421 crore against a base size of ₹100 crore at an interest rate of 7.97% per annum.
- The GCC said the green bond issue would follow Securities and Exchange Board of India regulations.
- The SEBI Regulations (Guidance note) requires the establishment of a Bond Issue Committee with Commissioner as chairperson.
- The bond would adhere to international frameworks such as the Climate Bonds Standard and Certification Scheme, and the Green Bond Principles issued by the International Capital Market Association.
- Since it is a ‘Green Bond’, the GCC is eligible to receive up to ₹20 crore as an incentive, under the AMRUT 2.0 scheme.
- It is also eligible for an incentive of ₹10 crore per ₹100 crore raised, subject to a maximum of ₹20 crore, under the scheme.
- The proceeds from this bond will be used to part-fund the biomining project at Kodungaiyur dump yard.
- The GCC’s total contribution is ₹385.64 crore — ₹205.64 crore financed through the bond and ₹180 crore through KfW, a German Bank.
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