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The Nashik Municipal Corporation (NMC) today reached a new milestone in the urban development history of Maharashtra by publicly listing its ambitious initiative ‘Swachh Godavari Green Bonds 2030’ on the National Stock Exchange in Mumbai. The listing of these green bonds worth a total of ₹200 crore has strengthened the way for sustainable development, river cleaning and infrastructure needed for world-class events like the Kumbh Mela. The original issue size for this issue of 10,000 bonds issued in unsecured, taxable, redeemable and irrevocable form of face value of ₹2 lakh each was ₹100 crore, with green shoe option available for the same amount, raising the total fund to ₹200 crore. Funds have been raised through two separate classes of bonds, STRPP A and STRPP B, both having a face value of ₹1,00,000.

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Chief Minister Devendra Fadnavis himself was present in this grand listing ceremony. While appreciating the huge response received by Nashik Municipal Corporation, he expressed the opinion that this initiative will be historic for the development of the city. Getting almost four times more subscription, he said, is an acknowledgment of the investors’ strong faith in the development of Nashik. NSE MD and CEO Ashish Kumar Chauhan also said that NMC has set a precedent for municipal corporations in the country by completing the bond process in a very short time. He explained that this achievement of NMC, which completed fund-raising in just four months, has become a new benchmark for the urban development sector in the country. NMC Commissioner Manisha Khatri said that the amount received from these bonds will be utilized for the construction of various facilities required for the 2027 Kumbh Mela.

The response from investors to this issue was remarkable. Issued at a coupon rate of 7.80%, the original issue was fully subscribed within minutes on the internet bidding platform. The issue was oversubscribed by 3.95 times with total bids of ₹395 crore received. The credibility of these bonds is further highlighted by the ‘AA+’ rating from both CRISIL and India Ratings, a reputed agency. A robust escrow based payment system linked to various revenue sources like tax collection, fees, user size, fines, investment income, interest and principal repayment is assured, which became very important for investors.

The amount raised from these bonds will be used for important projects like Ramjula Pedestrian Bridge, Ram Kal Path Precinct Development, Kalaram–Kapaleshwar Temple Precinct Development and Sewerage Network Improvement in Panchavati, Satpur and Nashik West Areas. All these projects are expected to improve the ease of transportation, religious tourism, sanitation management and public amenities in the city. AK Capital Services Ltd. as Transaction Advisor. Saw the work. Apart from this, NMC will get an incentive of ₹26 crore from the central government for issuing municipal bonds, and an additional assistance of 25% i.e. ₹68.75 crore is likely to be received under the UCF grant. Thus a total incentive fund of ₹94.75 crore can be availed to NMC for future development activities. This grant will not only increase financial stability, but will also give a big boost to the sustainable and smart city development of Nashik.

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Nashik Municipal Corporation’s ‘Swachh Godavari Green Bonds’ is not just a financial initiative, but a major step towards river cleaning, urban renewal and providing strong infrastructure to the growing population of the city. The listing is expected to inspire other local bodies in Maharashtra and strengthen the municipal bond market in the country.