R ARIVANANTHAM
CHENNAI, JAN 9
In a landmark step towards sustainable urban financing, the Greater Chennai Corporation (GCC) has successfully raised ₹205.59 crore through its first-ever Green Municipal Bond, which will be listed on the National Stock Exchange (NSE) on January 12, 2026. The issue reinforces GCC’s commitment to climate-responsive infrastructure development and positions Chennai as a frontrunner in India’s green municipal finance movement.
- Greater Chennai Corporation’s first Green Municipal Bond to be listed on NSE on January 12, 2026
- Funds to power large-scale bio-mining and remediation of Kodungaiyur Dumping Ground
- Issue oversubscribed 5.02 times, signalling strong investor confidence in GCC’s governance and finances
- AA+ rated bond, 10-year tenure at competitive 7.95% coupon; AMRUT 2.0 incentive to lower borrowing cost
This issuance marks GCC’s second municipal bond in the current financial year and its maiden green bond, underlining the civic body’s growing leadership in adopting innovative, transparent and responsible financing instruments for large-scale urban transformation.
The proceeds from the green bond will be channelled towards the bio-mining and remediation of the Kodungaiyur Dumping Ground, one of Chennai’s most critical environmental infrastructure projects. The initiative covers approximately 252 acres of the total 342.91-acre site and involves scientific processing and removal of legacy municipal solid waste accumulated over decades.
The total project cost stands at ₹648.38 crore, with GCC’s share pegged at ₹385.64 crore. Of this, ₹205.59 crore has been mobilised through the Green Municipal Bond, marking a decisive shift towards sustainable and market-linked funding for urban environmental remediation.
The bond issue witnessed an overwhelming response from investors, with the base issue size of ₹100.03 crore oversubscribed by an impressive 5.02 times. Bids worth ₹501.9 crore were received via the NSE’s Electronic Bidding Platform, reflecting strong investor confidence in GCC’s financial discipline, governance standards and project structuring.
The bond has been issued for a tenure of 10 years at a highly competitive coupon rate of 7.95% per annum, making it one of the most attractively priced municipal bond issuances in recent times.
Further strengthening its credibility, the GCC Green Municipal Bond has been rated ‘AA+’ by both CARE Ratings and Acuité Ratings, underscoring the Corporation’s robust financial position, sound governance framework and structured debt-servicing mechanisms.
As a first-time issuer of a Green Municipal Bond, GCC is also eligible for a Union Government incentive under the AMRUT 2.0 scheme, amounting to ₹10 crore for every ₹100 crore raised, subject to a maximum of ₹20 crore. This incentive will effectively reduce the cost of borrowing, making the issuance not only environmentally responsible but also financially prudent.
With this successful green bond launch, Greater Chennai Corporation has set a powerful precedent for Indian cities, demonstrating how capital markets can be leveraged to fund sustainable urban infrastructure, while delivering strong investor returns and long-term environmental benefits.
