Ghaziabad Municipal Corporation issues country’s first Green Municipal Bond

  • Ghaziabad Municipal Corporation raised Rs 150 crore fund through bonds
  • Tertiary Sewage Treatment Plant (TSTP) plant to be constructed by bond
  • The waste water will be purified and it will be made use of industrial water

 

Lucknow 31 March 2021, The Ghaziabad Municipal Corporation has issued the country’s first green municipal bond on Wednesday 31 March 2021. The Municipal Corporation, issued on 31 March 2021, has raised funds of Rs 150 crore (base issue Rs 100 crore and green issue option Rs 50 crore) through bonds. A total of 40 online bids of 401 crore were received on the online bidding platform of the stock exchange against the municipal bond of 150 crore, thus the Ghaziabad municipal bond subscribed 04 times. The bonds were subscribed at a coupon rate of 8.10, one of the lowest rates in the contemporary history of municipal bonds. The entire issue was subscribed within the first minute which shows the confidence of the investors in the Ghaziabad Municipal Bond and the good governance policy of the Uttar Pradesh government.

This bond will create the Tertiary Sewage Treatment Plant (TSTP). The waste water from this plant will be treated and used to make it suitable for industrial water.

 

Indirapuram Ghaziabad plant to be set up

The project is being prepared for Sahibabad Industrial Area in Ghaziabad. The total cost of the project is about Rs 240 crore, part of which will be funded by the Green Municipal Corporation of Ghaziabad Municipal Corporation. Ghaziabad Municipal Corporation has also prepared a DPR for this scheme from a firm. The implementation of the scheme will end the industry’s dependence on groundwater. There will also be a ban on water exploitation. The Municipal Corporation will also earn from this project. The municipal corporation will charge the user for the supply of water to the industries. This project will be ready within about 27 to 30 months. This plant will be set up at Indirapuram Ghaziabad.

 

In 2019, Lucknow and Ghaziabad Municipal Corporation was approved by the state government to issue bonds. This was followed by a credit rating from a Sebi authorized agency. AA ratings have been given by reputed institutions like BricksWorks and India Ratings.

 

What is Green Bond

A green bond is a bond issued by any entity, government groups or alliances and corporates, for the purpose of which the money raised from the bonds is used for environmentally classified projects.

Thus, the 150 crore green bond issued by the Ghaziabad Municipal Corporation is environmentally friendly and different from other bonds due to the principle of water reuse.

 

During the beading of Green Municipal Bond in the Directorate of Urban Development Office. Additional Chief Secretary, Urban Development, Urban Employment and Poverty Alleviation, Mr. Rajneesh Dubey, Special Secretary, Urban Development Department and Mission Director Smart City Mr. Indramani Tripathi, Municipal Commissioner Ghaziabad Mr. Mahendra Singh Tawar, Zonal Head of HDFC Bank Mr. Prabhat Upadhyay Ji, State Head of HDFC Bank Mr. Manoj Rai Ji, Area Head of HDFC Bank Mr. Ranjit Singh Ji, Mr. Varun Kaushik, Director, AK Capital AVP Mr. Vaibhav Jain, Ms. Hemlata Agrawal, Manager of BSE, Mr. Anurag Arunji, Vice President, Darashaw, were present along with many people.

 

Through the virtual medium, Hon’ble Mayor Gaziabad Mr. Keshav Verma, Advisor, City Development Department and Mrs. Sujatha Mr. Kumar, Municipal Bond Expert were present along with the members of the Ghaziabad Bond Committee.

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