Mumbai BMC Plans To Raise Up To ₹10,000 Crore Through Green Bonds Amid ₹2.34 Lakh Crore Liabilities
Mumbai: Facing liabilities of Rs 2.34 lakh crore amid large-scale infrastructure commitments, the BMC is looking to tap the debt market through green municipal bonds to diversify its funding sources. The civic body has floated an Expression of Interest (EoI) to appoint a debenture trustee for the proposed bond issue. Bonds to fund water infrastructure The BMC aims to mobilise between Rs 5,000…
Mumbai's Brihanmumbai Municipal Corporation (BMC) is exploring green municipal bonds to raise up to ₹10,000 crore in order to fund large-scale infrastructure projects. The city faces liabilities of Rs 2.34 lakh crore amid numerous infrastructure commitments. The BMC has issued an Expression of Interest (EoI) to select a debenture trustee for the proposed bond issue.
The funds would be used for water infrastructure projects, including wastewater treatment plants, a desalination plant, water tunnel projects and a dam to augment the city's water supply. The BMC has finalized an agency to assess its credit rating and has chosen banks through which the bonds will be issued. A debenture trustee will safeguard bondholders' interests.
The BMC is also exploring new funding sources beyond internal revenues, with the Finance Minister announcing an incentive for municipal bond issuances in the upcoming budget.
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