- CM Bhupendra Patel: “Surat’s Green Bond marks Gujarat’s next leap—urban finance aligned with sustainability”
NSE MD Ashishkumar Chauhan: “Eight-times oversubscription reflects growing trust in credible green municipal issuances”
SMC Commissioner Shalini Agarwal: “This is not just Surat’s success—it’s a signal of cities leading India’s green growth story” - The listing marks Surat as the first municipal corporation from Gujarat and only the second in India to tap the public bond market for green infrastructure financing
NE BUSINESS BUREAU
MUMBAI, OCT 16
In a milestone moment for India’s urban finance landscape, the National Stock Exchange (NSE) hosted the listing ceremony of Surat Municipal Corporation’s (SMC) ₹200-crore Green Municipal Bond public issue, in the presence of Gujarat Chief Minister Bhupendra Patel.
The listing marks Surat as the first municipal corporation from Gujarat and only the second in India to tap the public bond market for green infrastructure financing.
With a base issue of ₹100 crore and a green-shoe option of ₹100 crore, the bond saw an overwhelming subscription—eight times the base issue, underscoring investor confidence in sustainable urban development.
Funds raised will support key climate-resilient projects, including renewable energy (10 MW solar and 6.3 MW wind), zero-liquid-discharge water treatment plants, advanced filtration upgrades, and green-certified water infrastructure—all under the Climate Bonds Initiative’s global standards.
Gujarat Chief Minister Bhupendra Patel lauded the achievement, saying: “Gujarat’s cities have long led in innovation and fiscal responsibility. With Surat’s green bond, we are seeing the next leap—urban finance aligned with environmental sustainability. The state will continue to encourage all urban local bodies to explore capital markets as a pathway to self-reliant growth.”
Ashishkumar Chauhan, MD & CEO, NSE, praised the landmark issue: “We congratulate Surat Municipal Corporation on its successful maiden public issue. The eight-times oversubscription demonstrates both retail and institutional investors’ growing confidence in credible green municipal issuances. As India’s fourth-largest capital market globally, NSE remains committed to enabling cities to raise funds transparently for sustainable infrastructure.”
He further noted that “nearly one-third of India’s ₹13,500-crore municipal bond mobilization has come from Gujarat—showcasing the state’s leadership in local capital markets.”
Shalini Agarwal, IAS, Commissioner, Surat Municipal Corporation, expressed gratitude, stating: “This successful public issue is not just a milestone for Surat, but a signal of confidence in the ability of cities to lead India’s green growth story. We will continue expanding sustainable infrastructure financing to make Surat a model for climate-smart urban development.”
Gurjeet Singh Dhillon, Director, MoHUA, Government of India, observed:“The success of Surat’s green municipal bond showcases the maturity of India’s municipal finance ecosystem. It strengthens the vision of Atmanirbhar Urban Local Bodies—financially empowered, transparent, and climate-resilient institutions driving India’s urban transformation.”
The SMC Green Municipal Bond, a listed, secured, redeemable non-convertible debenture, aligns with SEBI’s Green Debt Security Framework and Climate Bonds Initiative standards.
It follows Gujarat’s trailblazing efforts in municipal finance, with Gandhinagar’s Green Bond earlier this year and two more issuances in the pipeline—cementing the state’s leadership in sustainable city funding and self-reliant urban development.
