Maharashtra’s First-Ever Green Municipal Bond Hits BSE—PCMC Makes History!

Image Source: The Indian Express

The Pimpri Chinchwad Municipal Corporation (PCMC) has made history because it has successfully listed its Rs 200 crore Green Municipal Bonds on the Bombay Stock Exchange (BSE), becoming the first civic body in Maharashtra to raise funds through this medium exclusively for sustainable urban mobility projects.

Key Highlights of the Green Bond Listing

Oversubscription & Investor Confidence: PCMC bond issue was subscribed 5.13 times with bids totaling Rs 513 crore, reflecting the high confidence of investors in PCMC's vision and Maharashtra's administration.
Sustainable Infrastructure Projects: The proceeds would be utilized in two important projects:
Harit Setu in Nigdi-Pradhikaran – An environmentally friendly mobility corridor with a focus on enhancing connectivity.
Gawalimatha to Indrayaninagar Chowk via Telco Road – An environmentally friendly transport system integrating metro and Bus Rapid Transit System (BRTS) networks.
Government Support: Maharashtra Chief Minister Devendra Fadnavis, and Deputy Chief Ministers Eknath Shinde and Ajit Pawar, presided over the bell-ringing ceremony at Mumbai, terming this milestone achievement.
National Policy Alignment: The initiative aligns with Prime Minister Narendra Modi’s push for greater municipal participation in financial markets, encouraging urban local bodies to explore market instruments like municipal bonds for development financing.

Impact on Urban Development

PCMC green bonds are structured following SEBI guidelines for green debt securities to provide a guarantee that the proceeds will be used solely for climate-resilient infrastructure. Experts remark that this move sets an example for other municipal bodies looking to fund low-emission and people-friendly means of mobility.

As Indian cities become increasingly polluted and congested with traffic, green bonds offer a reasonable model to mobilize climate-resilient infrastructure financing without sacrificing fiscal responsibility. This listing is witnessed to pave the way for future green financing initiatives across the country.

Sources: Business World, MSN

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