Ahmedabad city issues municipal green bonds worth Rs 200 crore, oversubscribed by 6.8 times

Following Indore and Ghaziabad, the Ahmedabad Municipal Corporation (AMC) has become the third municipality to issue municipal green bonds (MGBs). The green activities for the use of bond proceeds have been chosen from the AMRUT 2.0 scheme. The bonds are also required to secure green certification, which ensures their integrity. The oversubscription of these MGBs highlights the increasing appetite of investors for green bonds.

This issuance has witnessed a coupon rate of 7.9 per cent, which is 80 bps lower than the previous issuance by the AMC in 2019. Will this lower cost of borrowing encourage others to turn to green bonds for financing urban infrastructure?