NSE lists first ever green bonds issued by Indore Municipal Corporation

Municipal bonds provide an alternative means of financing for urban local bodies and reduce dependency on central and state grants

The Indore Municipal Corporation's Green Bonds have been listed on NSE, marking the first-ever green bond issue by a municipal corporation in India. According to Shri Ashishkumar Chauhan, MD & CEO of NSE, the launch of the Green Bond issue by the Indore municipal corporation is an example of cooperative federalism and the depth of the local governance model in India.  

As urbanization continues to grow rapidly, urban local bodies need to keep up with the expansion and upgrades to existing urban infrastructure. Municipal bonds provide an alternative means of financing for urban local bodies and reduce dependency on central and state grants. Most urban infra bonds can be categorized as green bonds since the proceeds are primarily directed towards energy, transport, water management, sewage treatment and energy-saving. Green Municipal bonds will also attract new foreign investors who specialize in sustainable financing and invest in projects with environmental, social and governance considerations.  

The public issue of Indore Municipal bonds received an overwhelming response, with an overall subscription of 5.91 times the issue size. This reflects investors' interest in Green bonds, which provide an opportunity to participate in nation-building in addition to earning returns.  

The issuance of green bonds by IMC will contribute to the development of green financing and support India's vision for transitioning towards a clean and green energy future. The global green bond market has surpassed the milestone of 2 trillion USD in terms of cumulative green bond issuance. In India, corporates, PSUs and financial institutions have issued green bonds worth approximately 10.8 billion USD during 2019-2022.  

NSE is committed to playing an active and participatory role in contributing towards India's vision for a sustainable future, as envisioned under the "Panchamrit" vision of the honorable Prime Minister