Surat, August 23, 2025 – The Surat Municipal Corporation (SMC) has successfully obtained international-standard certification from the London-based Climate Bond Initiative (CBI). This milestone paves the way for the issuance of a ₹200 crore green municipal bond, in line with SEBI’s guidelines for green debt securities.
The bond issuance will consist of a ₹100 crore base issue plus a ₹100 crore green shoe option. These will be structured as a public issue of listed, taxable, redeemable, secured, non-convertible municipal bond debentures, and will be open to a wide range of investors, including institutional buyers, corporates, high-net-worth individuals, and retail investors.
The green bond proceeds will fund six key projects focused on sustainable infrastructure development:
A 10 MW ground-mounted solar power plant
A 6.3 MW wind power plant
A centralized dry and wet waste processing facility
Urban area development in Kosad as part of the BRTS (Bus Rapid Transit System) initiative
A 250 MLD zero liquid discharge water treatment plant in Variav
Upgrading Rander’s water treatment plant from 50 MLD to 160 MLD using advanced membrane filtration technology
Construction of a 400 MLD raw water intake well, accompanying chlorination and HT (High Tension) rooms, and a pipeline (1,829 mm diameter) connecting the intake well to the Variav WTP
SMC Municipal Commissioner Shalini Agarwal remarked that the initiative underscores the Corporation’s commitment to sustainable urban growth, investment in renewable energy, improved waste management, and expansion of clean water infrastructure.
Key Highlights:
| Certification | London-based Climate Bond Initiative |
| Total Bond Value | ₹200 crore (₹100 crore base issue + ₹100 crore green shoe option) |
| Bond Features | Listed, taxable, redeemable, secured, non-convertible debentures |
| Target Beneficiaries | Institutional, corporate, HNI, and retail investors |
| Funded Projects | Solar, wind, waste processing, BRTS area development, water treatment infrastructure |
| Strategic Goals | Sustainable urban development, renewable energy, efficient waste & water infrastructure |
This development is a noteworthy stride toward strengthening Surat’s position as a model for sustainable and resilient urban infrastructure. The backing of global certification enhances the bond’s credibility and appeal to investors.