Nashik Municipal Corporation (NMC) lists ₹200 crore green bonds on NSE and BSE with 5.24x oversubscription

Key facts

• The Nashik Municipal Corporation (NMC) listed its green bonds on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on Monday, receiving an oversubscription of 5.24 times.
• The NMC aims to raise ₹200 crore to fund key water supply projects linked to the Mukane dam.
• The NMC has become the first municipal corporation in India to complete both public and private bond issuances within a single financial year.
• The bond proceeds will finance the expansion of the Mukane water supply scheme, including a water treatment plant at Nilgiri Bag in the Panchavati division and a gravity-based main water distribution pipeline from Vilholi to Sadhugram in Tapovan.
• The initiatives are expected to reduce the non-revenue water of the city from 47% to 20%.
• The NMC will pay ₹104 crore in interest over the next decade but will receive ₹96 crore from the Centre's urban challenge funds, ₹20 crore in incentives for green bonds, and ₹50 crore in accumulated escrow account interest.
• Chief Minister Devendra Fadnavis directed the Maharashtra Institution for Transformation (MITRA) to identify projects for smaller municipal corporations to collectively raise ₹1,000 crore through similar bonds.