Chennai Corporation raises ₹205.59 crore through first green municipal bond

The Greater Chennai Corporation (GCC) has raised ₹205.59 crore through its first Green Municipal Bond issuance. According to a press release from the Corporation, it is scheduled to be listed on the National Stock Exchange (NSE) January 12, 2026.

This is the Corporation’s second municipal bond issuance in the current financial year.

The funds raised through the bond will be utilised for bio-mining and remediation work at the Kodungaiyur dumping ground, an ongoing environmental infrastructure project. The project covers around 252 acres of the total 342.91-acre site and aims at the scientific removal of legacy solid waste accumulated over several years.

The total cost of the Kodungaiyur project is ₹648.38 crore, of which the Chennai Corporation’s share is ₹385.64 crore. Of this, ₹205.59 crore has been raised through the green municipal bond with a tenure of 10 years at an annual interest rate of 7.95%.

The bond issuance received strong investor response, with bids worth ₹501.90 crore submitted through the NSE electronic bidding platform against a base issue size of ₹100.03 crore, the release said.

The GCC is eligible to receive an incentive grant of ₹20 crore under the Union government’s AMRUT 2.0 scheme, which will reduce the cost of raising funds through green municipal bonds, the release added.