SMC to Issue ₹200 Crore Green Municipal Bonds; Subscription to Open in October

Surat: The Surat Municipal Corporation (SMC) is set to issue ₹200 crore worth of green municipal bonds through a public issue. The issuance comprises a ₹100 crore base issue and an additional ₹100 crore green shoe option. These bonds will be listed, taxable, redeemable, secured, and non-convertible debentures, certified under the Climate Bonds Initiative.

The face value of each green bond is ₹1,000, with tenures of 4 years (STRPP A) and 5 years (STRPP B). The bonds carry an annual coupon rate of 8.00%, payable semi-annually, with an effective annual yield of 8.16%.

The public issue will follow a structured quota system: 60% for Qualified Institutional Buyers (QIBs), 25% for corporates and High Net Worth Individuals (HNIs), and 15% for retail investors. The minimum application amount for each bond is ₹10,000, with subsequent multiples of ₹1,000.

The green bond subscription will open on Monday, October 6, 2025, and close on Thursday, October 9, 2025. Ahead of the issue, a stakeholder meeting was held on September 25, 2025, at the Science Center under the chairmanship of the Municipal Commissioner, where various city and state-level green initiatives by SMC were highlighted.

Several other municipal corporations, including Ghaziabad, Pimpri-Chinchwad, Indore, and Vadodara, have previously tapped into green bonds for financing. In August, SMC received certification from the London-based Climate Bond Initiative, aligning with SEBI guidelines for green debt securities. DeshGujarat