Surat Municipal Corporation Announces Rs 200 Crore Green Bond

Surat | Gujarat —– In a pioneering move that combines finance with sustainability, the Surat Municipal Corporation (SMC) has announced the issuance of a ₹200 crore green municipal bond, the first of its kind in Gujarat, aimed at financing eco-friendly projects in the city. The subscription window will be open from October 6 to October 9, 2025, following SEBI’s clearance of the offer document filed on September 18.

The bond, which will be listed on both major stock exchanges, is taxable, redeemable, secured, and non-convertible, and will carry certification under the Climate Bonds Initiative, ensuring global recognition of its green credentials.

“People’s Bond, People’s City”

Speaking at an investor awareness meet organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) at Sarsana, Surat Municipal Commissioner Shalini Agarwal (IAS) emphasized that the bond is not just about raising funds but about fostering public participation in Surat’s green journey.

“The 12-13 awards Surat city has won belong to the people, and we dedicate them to the people. Cities will contribute 85% of the country’s GDP in the future, and Surat has already set an example in urban planning, water recycling, and solar energy. By issuing this green bond, we want every citizen to be part of Surat’s sustainable growth,” Agarwal said.

She further noted that Surat leads the state in solar rooftop adoption and has become the first city in India to operate 100% electric buses on its BRTS corridor. Through water recycling initiatives, Surat Municipal Corporation has also generated ₹140 crore in revenue, highlighting the financial as well as environmental impact of sustainable policies.

Attractive Yield, Citizen Participation

The bond offers a yield of 8%, which Agarwal described as “attractive for small investors.” She highlighted that despite the extensive paperwork involved, SMC deliberately chose the IPO route, ensuring 15% of the issue is reserved for retail investors.

“We are going with credibility before the people. The purpose is not only to raise funds but also to connect more citizens with Surat’s green initiatives. This bond belongs to the people, and we appeal to all Suratis to invest and be part of this journey,” she said.

Mayor Calls for Collective Effort

On this occasion, Surat Mayor Daxesh Mawani reinforced the appeal to citizens, using a metaphor close to the heart of every Surat resident.

“The sun of Surat is hot at noon. With this green bond, even the smallest citizen can contribute to Surat’s green future. Let us all come together and make Surat shine brighter in sustainability,” Mawani said.

Boosting India’s Urban Green Finance

With both central and state governments prioritizing urban infrastructure, Surat’s move marks a significant milestone in green financing at the municipal level. By combining investor participation with climate-focused projects, Surat is setting a precedent for other cities across India.

Members of SGCCI were briefed about the bond subscription process and Surat’s various eco-friendly initiatives at both the state and national levels.