Nashik: Nashik Municipal Corporation (NMC) has filed a draft offer document for a public issue of up to ₹200 crore in green municipal bonds, marking its return to the debt market to fund critical urban infrastructure projects.
The proposed issue comprises a base size of ₹100 crore with a greenshoe option of ₹100 crore, aggregating to ₹200 crore. The bonds are unsecured, taxable, redeemable, non-convertible debentures, structured into eight separately transferable and redeemable principal parts (STRPPs) with maturities ranging from three to ten years.
According to the draft offer document dated January 14, 2026, the bonds have received provisional AA+/Stable ratings from India Ratings and Research and CRISIL Ratings, indicating a high degree of safety with low credit risk.
The net proceeds from the issue will be used to fund eligible green projects, primarily the augmentation of the Mukane Water Supply Scheme, including water treatment plants and transmission infrastructure. The project is aligned with preparations for the Sinhastha Kumbh, a major religious event that significantly increases the city’s population load.
NMC has stated that the bonds are being issued in compliance with the SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015, and will adhere to a defined Green Bond Framework, which has also undergone third-party review.
The issue will not be underwritten. However, investor protection mechanisms include a dedicated escrow structure, debt service reserve account (DSRA) covering two coupon payments, and a sinking fund mechanism, in line with SEBI norms.
The bonds are proposed to be listed on both the National Stock Exchange (NSE) and BSE, with NSE designated as the primary exchange for the issue. The face value of each bond is ₹1,000, making it accessible across institutional, non-institutional, high net-worth and retail investor categories.
As per regulatory requirements, the draft offer document has been opened for public comments for 15 days from the date of filing with the stock exchanges. NMC will address feedback before filing the final offer document with SEBI and the exchanges.
The move underscores the growing use of municipal bonds by urban local bodies to finance infrastructure, particularly green and climate-resilient projects, amid increasing pressure on traditional budgetary resources.