Ahmedabad issues municipal bonds to implement green projects

The Ahmedabad Municipal Corporation successfully raised 200 crore INR in January 2019 through green municipal bonds for projects like waste management and the cleaning of the Sabarmati River. This success was attributed to the city's AA+ credit rating and supportive national frameworks, including the AMRUT programme and regulatory easing by the Securities and Exchange Board of India (SEBI).

• In January 2019, the Ahmedabad Municipal Corporation (AMC) raised 200 crore Indian rupees (INR), approximately $26.2 million as of April 2020, through municipal bonds to fund 'green projects'. These funds are intended for water supply, waste management, and other infrastructure, including the cleaning of the Sabarmati River. The bonds were listed on the National Stock Exchange of India with a five-year maturity and an interest rate of 8.7 percent.
• The success of Ahmedabad's bond issuance was driven by a high credit rating of AA+ from CRISIL and India Ratings for the 2018-2019 financial year. This rating was based on the city's operating efficiency and financial risk profile, specifically noting that from 2014 to 2018, income exceeded expenditure, and since 2008, 31 projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) were implemented without significantly exceeding budgets.
• National-level incentives and regulatory changes in India have encouraged the use of municipal bonds. The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) incentivises local governments to use capital markets for urban development. Additionally, the Securities and Exchange Board of India (SEBI) eased issuance rules in 2017 and, in May 2019, allowed foreign portfolio investors to invest in municipal bonds.

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} }