Vadodara Municipal Corporation (VMC) sets a regional precedent with the launch of its Rs. 100 crores (USD 12 million eqv.) Certified Green Muni Bond, a first for India and Asia region as a whole. Aimed at fostering sustainable urban development aligned with the Paris Agreement, the bond is dedicated to enhancing liquid wastewater management infrastructure across Vadodara.
D. Thara, Additional Secretary, Ministry of Housing and Urban Affairs, Govt. of India:
“Vadodara is issuing its second Municipal Bond, wherein it would raise Rs. 100 crore for developing 2 STPS of 121 MLD and 1 APS with drainage networks. In line with the vision of MoHUA, these projects would contribute towards improvement in air and water quality in the city. It is a ‘Green’ infrastructure as the sewage water would collected and treated. Further, the treated water would be reused by industries which will help save fresh drinking water. I express my best wishes to them.”
Kunal Kumar, Joint Secretary, Ministry of Housing and Urban Affairs, Govt. of India:
“Vadodara Municipal Corporation has proposed its second issue of Green Municipal Bond for Rs. 100 Cr. It is unique as it will be first certified green municipal bond in India. This is the second issue of bonds by Vadodara, after its first issue was oversubscribed by 10 times. It is heartening to see that Vadodara is raising funds from capital markets to develop essential infrastructure for its city.”
Sean Kidney, CEO of Climate Bonds Initiative, commented:
“This issuance by Vadodara Municipal Corporation marks a watershed moment for sustainable municipal finance, not just in India but across Asia. It exemplifies how local governments can harness green finance to catalyse critical investments in environmental infrastructure, aligning with urgent global climate objectives. Vadodara's proactive step demonstrates a scalable model for cities and countries aiming to integrate green projects within their broader sustainability and climate action plans. This bond is a testament to the evolving landscape of transition finance, highlighting the pivotal role municipalities play in the collective journey towards a resilient, low-carbon future.”
Dilip Rana (IAS), Municipal Commissioner, Vadodara Municipal Corporation:
“VMC's proposed Green Municipal Bond of Rs. 100 Cr is unique itself as it is first globally certified green municipal bond in India for funding of sustainable infrastructure by any ULB. Green certification by Climate Bond Initiative. Bond has been rated AA+ STABLE by India Ratings. Proceed from Green Municipal Bond would be utilised for 2 STPS of 121 MLD and 1 APS with drainage networks. These projects would ultimately contribute towards improvement in air and water quality as the sewage water would be collected, treated, and discharged, further also in extension it would tertiary treated, and water would be reused for industry purpose will help to save fresh water.”
Santosh Tiwari, Chief Accountant, Vadodara Municipal Corporation:
“Marking a milestone in sustainable municipal finance, VMC's Green Bonds catalyse investments in liquid wastewater management projects. This strategic move towards climate change mitigation highlights VMC's commitment to reduce emissions, natural ecosystem conservation and bolstering the city's plan towards Net Zero. The bond, Certified under the Climate Bonds Standard’s Water Criteria, are pivotal in realising VMC's mission to improve citizens' quality of life by ensuring access to clean sustainable infrastructure, aiming to make Vadodara a model for green cities.”
