5 days ago
PCMC raises Rs 200 crore through Maharashtra's First Green municipal bond
Describing it as a landmark achievement, the Pimpri Chinchwad Municipal Corporation (PCMC) on Tuesday claimed that it successfully raised Rs 200 crore through 'Maharashtra's first Green Municipal Bond,' receiving an overwhelming response from investors.
The issue, floated on the BSE's Electronic Bidding Platform via private placement, attracted bids worth Rs 513 crore — oversubscribing the offer by 5.13 times. The base issue of Rs 100 crore was fully subscribed within one minute of opening, reflecting robust investor confidence, the civic administration said.
Offered at a competitive coupon rate of 7.85%, the bonds are rated 'AA+' by CRISIL Ratings and CARE Ratings, with a tenure of five years.
The structured repayment mechanism is secured through an escrow of Property Tax collections, ensuring timely servicing of interest and principal payments, officials said.
The funds raised will support two major green infrastructure initiatives — the Harit Setu Project in Nigdi Pradhikaran and the development of Telco Road from Gawali Matha to Indrayani Nagar Chowk — both contributing to PCMC's commitment to sustainable and climate-resilient urban development.
Municipal Commissioner Shekhar Singh said, 'The overwhelming response to our Green Bond is a testament to the trust that investors place in Pimpri-Chinchwad's vision for a sustainable future. This funding will help us accelerate critical green infrastructure projects and strengthen our resilience against climate change.'
This is PCMC's second municipal bond in two years, following the successful Rs 200 crore issue in July 2023. With the successful issuance of this green bond, PCMC also qualifies for a Rs 20 crore incentive from the Government of India, as part of its support for environmentally responsible financing, officials said.
A. K. Capital Services Ltd served as the Transaction Advisor and Merchant Banker for the issue.
