Mayor R. Priya and GCC Commissioner J. Kumaragurubaran chairing the Council meeting.
| Photo Credit: RAGU R.
The Greater Chennai Corporation (GCC) Council on Wednesday passed a resolution to raise ₹205.64 crore by issuing its first Green Municipal Bond to fund major environment-friendly infrastructure projects.
The resolution said that the GCC issued a municipal bond — listed on the National Stock Exchange on May 22 — that raised ₹421 crore against a base size of ₹100 crore at an interest rate of 7.97% per annum.
The GCC said the green bond issue would follow Securities and Exchange Board of Indiaregulations.
SEBI Regulations (Guidance note) requires the establishment of a Bond Issue Committee with Commissioner as chairperson.
The civic body said it would provide annual impact reports to investors, detailing fund utilisation and environmental outcomes. Further, the bond would adhere to international frameworks such as the Climate Bonds Standard and Certification Scheme, and the Green Bond Principles issued by the International Capital Market Association.
Since it is a ‘Green Bond’, the GCC is eligible to receive up to ₹20 crore as an incentive, under the AMRUT 2.0 scheme. It is also eligible for an incentive of ₹10 crore per ₹100 crore raised, subject to a maximum of ₹20 crore, under the scheme.
According to the resolution, the proceeds from this bond will be used to part-fund the biomining project at Kodungaiyur dumpyard. The GCC’s total contribution is ₹385.64 crore — ₹205.64 crore financed through the bond and ₹180 crore through KfW, a German Bank.
Published – July 31, 2025 12:57 am IST
