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Time of India
12-07-2025
- Business
- Time of India
Green bonds, greener cities: Financing tomorrow's infrastructure today– Vadodara leads the way
India's cities are growing at an unprecedented pace. By 2030, urban areas will be home to over 600 million people and contribute nearly 75% of the country's GDP. Yet, despite their economic significance, most Urban Local Bodies (ULBs) struggle to fund infrastructure that is both inclusive and environmentally sustainable. One of the core challenges lies in how these ULBs currently raise and manage funds. Despite their importance, ULBs contribute just 0.6% to India's GDP, a figure far below the global norm. Without sufficient revenue streams or financial credibility, their ability to attract private or institutional investment remains severely limited. Recent conversations in financial and policy circles, particularly around municipal reform, are beginning to address this gap. A growing consensus is emerging: cities must embrace structured fiscal planning, climate-conscious accounting, and investor-grade transparency to tap into evolving capital markets. Empowering Cities: Launch of The Green Book | SEBI Event, Thiruvananthapuram In a bold departure from traditional models, Vadodara Municipal Corporation (VMC) issued Asia's first globally certified Green Municipal Bond, raising ₹100 crore for environmentally aligned water and sanitation projects. Certified under the Climate Bonds Standard and oversubscribed nearly 14.6 times, the bond sets a new benchmark for urban climate finance in India. Building market-ready municipalities To close the disparity in how ULBs contribute to the national GDP, municipalities must prioritize credible accounting, climate-aligned disclosures, and surplus management as prerequisites for sustainable borrowing. In FY 2023-24, VMC reported a revenue surplus of ₹163.74 crore and secured an AA+ (Stable) credit rating. This financial robustness, paired with transparent disclosures and structured budget planning, helped bolster investor confidence. A funding mix of 65% from state support and 24% from internal resources also illustrates a gradual but crucial shift away from grant dependence. Catalysing a national dialogue The recent discourse on strengthening municipal finance gained fresh momentum through the Municipal Bond Outreach Programme, conducted by the Securities and Exchange Board of India (SEBI) from June 30 to July 1, 2025, at Thiruvananthapuram. The initiative brought together key stakeholders, including city officials, regulators, credit agencies, and financial institutions, to chart a roadmap for market-based urban finance. Designed to build institutional capacity and enhance market readiness, the programme featured focused sessions on structuring bond issuances, regulatory compliance, credit ratings, and continuous disclosures. Participants engaged with intermediaries and case studies to gain practical insights into accessing capital markets. A key highlight of the event was the official launch of 'The Green Book – On Climate Finance & Green Municipal Bonds' by the Vadodara Municipal Corporation. The launch was led by senior members of VMC, including the Hon'ble Mayor, Municipal Commissioner, Deputy Mayor and Chairman during a dedicated session celebrating Vadodara's pioneering role in the municipal bond ecosystem. The spotlight on VMC highlighted how fiscal transparency, strong governance, and investor engagement are essential to building financially empowered, market-ready cities. Reimagining urban finance: Beyond bonds While green municipal bonds have emerged as a transformative tool for climate-aligned infrastructure financing, Vadodara's experience signals the need for a broader financial vision. 'The Green Book – On Climate Finance & Green Municipal Bonds' report highlights several alternative and complementary financing avenues that Urban Local Bodies (ULBs) can leverage to strengthen fiscal autonomy and unlock capital for urban development.
Yahoo
06-06-2025
- Business
- Yahoo
PEAC Solutions unveils Green Asset Finance framework
PEAC Solutions, a multinational asset finance platform, has introduced its Green Asset Finance framework. The solutions were developed in partnership with global climate consultancy the Carbon Trust. The framework offers its clients access to a suite of products to fund eligible assets including clean transportation, energy-efficient plants and machinery, recycling facilities, and assets supporting pollution control or the circular economy. PEAC Solutions managing director Steve Bolton said: 'At PEAC, we are committed to play our part in tackling the environmental challenges we all face, so we are proud to have collaborated with the Carbon Trust on this Green Asset Finance Framework. 'By funding products under the framework, we are financing assets that help our customers achieve their business and environmental goals with equipment that has a confirmed positive environmental impact.' Operating across the UK, Europe and the US, PEAC Solutions is a top ten lessor in the UK. The company provides financial solutions to equipment manufacturers, dealers and direct customers across various industries and asset classes. As of July 2024, PEAC's global lease portfolio exceeded $5.4bn (£3.99bn). Carbon Trust senior manager Toby Kwan said: 'The Carbon Trust was pleased to be able to support in the development of PEAC's Green Financing Framework. Green asset finance is an important factor in supporting and driving sustainable growth. 'The framework is aligned with best market practices including the EU Taxonomy, Climate Bonds Standard and ICMA Green Loan Principles – allowing PEAC to assess its financing and mobilise capital in a way that contributes to a sustainable, environmentally responsible future.' Last month, PEAC Solutions named Eileen Schoonmaker as president of the Americas, effective 16 June 2025. At the same time, the asset finance provider collaborated with Crane Payment Innovations (CPI), a Crane NXT company, to provide rental schemes for CPI's convenience services. "PEAC Solutions unveils Green Asset Finance framework" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Economic Times
05-06-2025
- Business
- Economic Times
Sebi issues new ESG debt framework to regulate social, sustainability, and linked bonds
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel To encourage responsible finance and curb "purpose-washing," capital markets regulator Sebi has released a detailed framework for issuing and listing ESG (Environment, Social and Governance) debt securities, excluding green new norms, which came into effect on June 5, aim to enhance transparency, credibility, and accountability in the ESG debt to Sebi, ESG debt securities will now include three major categories apart from green bonds — social bonds, sustainability bonds , and sustainability-linked bonds . These instruments must follow recognized global standards such as the ICMA Principles, Climate Bonds Standard, ASEAN Standards, or any methodology notified by Indian financial bonds are meant to raise money for projects with a direct social impact, such as affordable housing, clean water, education, or food security. Sustainability bonds combine both environmental and social objectives, while sustainability-linked bonds are performance-based instruments, where the financial terms are tied to the issuer's achievement of pre-set sustainability of such bonds will need to make detailed disclosures before and after the issue. They must outline the specific projects they intend to fund, explain how they will track fund usage, and appoint independent third-party reviewers to verify claims. Post-listing, companies must share impact reports, usage of proceeds, and KPIs in their annual reports. This is aimed at curbing the misuse of ESG labels — known as 'purpose-washing' — where companies falsely claim to be funding ESG has also made it clear that companies listed on SME platforms and looking to issue ESG debt will need to follow bi-annual disclosure norms, as specified in the circular's annexures. The regulator has empowered ESG rating agencies and certified reviewers to ensure proper assessments of bond impact and target if any ESG funds are found misused or the projects do not align with their stated purpose, companies may be forced to redeem the securities regulatory push comes at a time when ESG investing is gaining traction in India. By aligning local frameworks with international norms, Sebi aims to build investor confidence and deepen India's ESG debt market responsibly.
Time of India
05-06-2025
- Business
- Time of India
Sebi issues new ESG debt framework to regulate social, sustainability, and linked bonds
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel To encourage responsible finance and curb "purpose-washing," capital markets regulator Sebi has released a detailed framework for issuing and listing ESG (Environment, Social and Governance) debt securities, excluding green new norms, which came into effect on June 5, aim to enhance transparency, credibility, and accountability in the ESG debt to Sebi, ESG debt securities will now include three major categories apart from green bonds — social bonds, sustainability bonds , and sustainability-linked bonds . These instruments must follow recognized global standards such as the ICMA Principles, Climate Bonds Standard, ASEAN Standards, or any methodology notified by Indian financial bonds are meant to raise money for projects with a direct social impact, such as affordable housing, clean water, education, or food security. Sustainability bonds combine both environmental and social objectives, while sustainability-linked bonds are performance-based instruments, where the financial terms are tied to the issuer's achievement of pre-set sustainability of such bonds will need to make detailed disclosures before and after the issue. They must outline the specific projects they intend to fund, explain how they will track fund usage, and appoint independent third-party reviewers to verify claims. Post-listing, companies must share impact reports, usage of proceeds, and KPIs in their annual reports. This is aimed at curbing the misuse of ESG labels — known as 'purpose-washing' — where companies falsely claim to be funding ESG has also made it clear that companies listed on SME platforms and looking to issue ESG debt will need to follow bi-annual disclosure norms, as specified in the circular's annexures. The regulator has empowered ESG rating agencies and certified reviewers to ensure proper assessments of bond impact and target if any ESG funds are found misused or the projects do not align with their stated purpose, companies may be forced to redeem the securities regulatory push comes at a time when ESG investing is gaining traction in India. By aligning local frameworks with international norms, Sebi aims to build investor confidence and deepen India's ESG debt market responsibly.
