AMC set to become 1st urban local body to issue green bonds

After a year’s wait for the central government nod to issue tax-free bonds, Ahmedabad Municipal Corporation (AMC) is finally set to issue green bonds, reportedly the first Urban Local Body (ULB) to issue such bonds in the country.

The civic body has been exploring new ways to raise money through the market, eyeing international investors as well.

In his draft budget for the 2018-19 fiscal, civic chief Mukesh Kumar has proposed to issue green bonds worth Rs 200 crore.

Green bonds are expected to bring a solution to the issue of Pirana garbage dump as AMC may utilise the money raised from selling the bonds to initiate bio-mining of the garbage hill. The money raised from green bonds is primarily utilised for projects in sanitation, cleanliness and waste recycling.

“We will now carry out all the paper work required to issue green bonds and then send our proposal to the state government, followed by the Ministry of Urban Development and then to the Ministry of Finance,” said Amish Shah, chief accountant of the AMC. Shah said the AMC is planning to invest in electric vehicles.

AMC currently has a stable AA rating from Fitch and CRISI, awarded in 2016. The rating is an evaluation of …read more