Ahmedabad issues municipal bonds to implement green projects

The Ahmedabad Municipal Corporation (AMC) successfully raised 200 crore Indian rupees (INR) through municipal bonds in January 2019 to fund green projects, including waste management, water supply, and the cleaning of the Sabarmati River. The bonds were oversubscribed 5.42 times, receiving INR 1,085 crore in subscriptions from 19 institutions. This success is attributed to AMC's AA+ credit rating from CRISIL and India Ratings, reflecting strong financial health and operational efficiency. The document highlights the role of the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and the Securities and Exchange Board of India (SEBI) in incentivising and easing the rules for municipal bond issuance to support climate-resilient infrastructure.

• Ahmedabad's issuance of municipal bonds demonstrates that these instruments can effectively fund climate-resilient urban development, particularly for large-scale projects requiring long tenors of 10-20 years.
• A high credit rating is essential for attracting investors; the Ahmedabad Municipal Corporation's bonds were oversubscribed 5.42 times after receiving an AA+ rating from CRISIL and India Ratings for the 2018-2019 financial year.
• The Indian government and regulatory bodies have actively incentivised the municipal bond market. The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) encourages local governments to use capital markets, while the Securities and Exchange Board of India (SEBI) has eased issuance rules and permitted foreign portfolio investors to invest.

APA

Verma, S. (2020). Ahmedabad issues municipal bonds to implement green projects. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/Ahmedabad-Green-Municipal-Bond-Case-Study-2.pdf

Chicago

Verma, Simant. Ahmedabad issues municipal bonds to implement green projects. Climate and Development Knowledge Network, 2020. https://cdkn.org/sites/default/files/files/Ahmedabad-Green-Municipal-Bond-Case-Study-2.pdf.

Wikipedia

{{cite report |last1=Verma |first1=Simant |title=Ahmedabad issues municipal bonds to implement green projects |publisher=Climate and Development Knowledge Network |date=May 2020 |url=https://cdkn.org/sites/default/files/files/Ahmedabad-Green-Municipal-Bond-Case-Study-2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{verma2020ahmedabad, author = {Verma, Simant}, title = {{Ahmedabad issues municipal bonds to implement green projects}}, institution = {Climate and Development Knowledge Network}, year = {2020}, month = may, url = {https://cdkn.org/sites/default/files/files/Ahmedabad-Green-Municipal-Bond-Case-Study-2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }