The Surat Municipal Corporation (SMC) has achieved a major milestone in sustainable urban finance with the successful listing of its Green Municipal Bond on the National Stock Exchange (NSE). The ₹200 crore (approximately $24 million) public issue saw an extraordinary response, being oversubscribed by over eight times, highlighting strong confidence from investors globally in the city’s green development agenda.
The bond, which has the distinction of being India’s first internationally certified municipal green bond—having received certification from the London-based Climate Bond Initiative (CBI)—was met with enthusiastic subscription across all investor categories. Demand in the Qualified Institutional Buyer (QIB) segment was especially robust, driving the oversubscription and underscoring the increasing appetite for high-rated, environmentally-focused debt instruments. The funds raised through this issuance, which carries a provisional ‘AA+/Stable’ credit rating, will be meticulously channeled into six key environmental projects across the city.
The proceeds are specifically earmarked for critical green initiatives, including the construction of solar and wind power generation plants, developing advanced water treatment facilities with Zero Liquid Discharge (ZLD) technology, and financing infrastructure for green public transport to reduce the city’s carbon footprint.
Speaking at the listing ceremony, Gujarat Chief Minister Bhupendra Patel stated, “The overwhelming eight-fold subscription to Surat’s Green Bond is a clear reflection of investors’ confidence in our commitment to sustainable development. This initiative perfectly aligns with Prime Minister Narendra Modi’s vision of achieving Net-Zero Emissions by 2070 and creating a ‘Viksit Bharat’ by 2047. By inviting public participation, Surat Municipal Corporation has become a model for how cities can finance their green growth.”
Surat Municipal Commissioner, Shalini Agarwal, emphasized the bond’s significance beyond just raising capital. “The successful issuance of this internationally certified bond signals the capability of Indian cities to lead the nation’s green transition. These funds will be a key resource in transforming Surat into a more climate-resilient city, focusing on renewable energy and water conservation,” she noted. Mayor Daxesh Mavani lauded the city’s overall efforts, saying the initiative is a “driving example of sustainable energy” that will contribute to making Surat one of the best cities in the world.
The bond’s success is expected to set a new benchmark, encouraging more Urban Local Bodies (ULBs) across the country to tap the capital market for financing sustainable infrastructure, thereby accelerating India’s broader climate commitments.
