Latest news with #TheGreenBook–OnClimateFinance&GreenMunicipalBonds'
Time of India
5 days ago
- 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.
India Gazette
01-07-2025
- Business
- India Gazette
SEBI hosts municipal bond outreach programme in Thiruvananthapuram to boost urban financing
New Delhi [India], July 1 (ANI): The Securities and Exchange Board of India (SEBI) conducted a two-day Municipal Bond Outreach Programme from June 30 to July 1 in Thiruvananthapuram, with a focus equip Urban Local Bodies (ULBs) and stakeholders with insights into municipal debt securities, pool financing, and innovative market-based financing mechanisms. The programme included session on the topics such as municipal bond issuances, regulatory compliance, credit rating, and continuous disclosures. Additionally, case studies and interactions with intermediaries provided participants with practical knowledge to access capital markets According to SEBI this initiative is a part of boards continued efforts to promote transparency, market readiness, and sustainable urban infrastructure financing through the municipal bond ecosystem. A central feature of the workshop was the launch of 'The Green Book - On Climate Finance & Green Municipal Bonds' by the Vadodara Municipal Corporation (VMC). Furthermore, the launch was led by senior members of VMC, including the Mayor, Municipal Commissioner, and Deputy Commissioner. 'The publication documents Asia's first globally certified Green Municipal Bond, issued by VMC, and presents it as a Global Case Study (2025) to guide other ULBs in adopting sustainable financing practices,' SEBI said. Recently, SEBI allowed registered intermediaries to use 'e-KYC Setu System' of National Payments Corporation of India to perform Aadhaar-based e-KYC authentication for ease of doing business, the markets regulator said in a statement. Under the present framework, registered intermediaries use e-KYC services of the Unique Identification Authority of India (UIDAI) in the securities market. This service has been accepted as a valid process for digital Know Your Client (KYC) verification using KYC User Agency (KUA /Sub-KUA) mechanism and /or the Digilocker. (ANI)
The Print
01-07-2025
- Business
- The Print
Sebi holds outreach programme to boost municipal bond ecosystem
'The Securities and Exchange Board of India (Sebi) organised a Municipal Bond Outreach Programme on June 30 – July 1, 2025, at Thiruvananthapuram,' the regulator said in a statement. The initiative was aimed at equipping urban local bodies (ULBs) and other stakeholders with insights into municipal debt securities, pool financing, and innovative market-based financing mechanisms. New Delhi, Jul 1 (PTI) Markets regulator Sebi on Tuesday said it has conducted a two-day Municipal Bond Outreach Programme in Thiruvananthapuram to deepen market awareness and support urban infrastructure financing through municipal debt instruments. The event covered a range of subjects, including structuring municipal bond issuances, regulatory compliance, credit rating, and continuous disclosures, Sebi said. Interactions with intermediaries and presentations of case studies were also part of the programme to offer hands-on guidance to participants. The regulator said the outreach programme is part of Sebi's continued efforts to promote transparency, market readiness and sustainable urban infrastructure financing through the municipal bond ecosystem. A key highlight of the programme was the official release of 'The Green Book – On Climate Finance & Green Municipal Bonds' by the Vadodara Municipal Corporation (VMC), it added. The publication, launched by VMC's Mayor, Municipal Commissioner and Deputy Commissioner, features Asia's first globally certified Green Municipal Bond issued by VMC. The document has been showcased as a 2025 Global Case Study, aimed at guiding other ULBs in adopting sustainable financing practices. Sebi said the publication is now accessible via a QR code and serves as a roadmap for future green bond issuances by municipal bodies. PTI HG HG BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
