Nashik Municipal Corp Launches Unsecured Green Bonds Of Rs2 Bn

Issue opens on Wednesday, February 25, 2026 and closes on Monday, March 02, 2026; Effective Yield up to 8.20% p.a. and Coupon rate of 8.05% p.a. payable half-yearly

(L-R): Shri Dattatry Patharut, CAFO, Nashik Municipal Corporation; Smt. Himgauri Aher, Mayor, Nashik Municipal Corporation and Smt. Manisha Khatri, Commissioner, Nashik Municipal Corporation

FinTech BizNews Service

Mumbai, 24 February 2026: Nashik Municipal Corporation (the “Corporation” or “NMC”), the municipal body of the Nashik city has announced the launch of its maiden public issue of rated, listed, taxable, unsecured, redeemable, non-convertible green municipal bonds in the nature of debentures of the face value of Rs 1000 each (comprising of 8 (eight) separately, transferable and redeemable principal parts (“STRPPs”) namely 1 STRPP A, 1 STRPP B, 1 STRPP C, 1 STRPP D, 1 STRPP E, 1 STRPP F, 1 STRPP G, and 1 STRPP H) with face value of each STRPP being Rs 125/- (Rupees One Hundred Twenty Five) each.

The Green Bonds have a coupon rate of 8.05% p.a. (payable half yearly) and effective yield of 8.20% p.a. across all investor categories i.e., Category I (Institutional Investors), Category II (Non-Institutional Investors) and Category III (Retail Individual Investors).

The Green Bonds proposed to be issued have been rated ‘Provisional IND AA+/Stable’ by India Ratings and Research Private Limited and ‘Provisional CRISIL AA+/Stable’ by CRISIL Ratings Limited. Securities with these ratings are considered to have high degree of safety regarding timely servicing of financial obligations. Such securities carry very low credit risk.

A. K. Capital Services Limited is the Lead Manager to the Issue.

The Net Proceeds from the Issue are proposed to be utilized towards incurring capital expenditure in respect of the Project, i.e., Augmentation of Mukane Water Supply Scheme - Water Treatment Plant (WTP), Construction of Gravity Main from Vilholi to Gandhinagar, Sadhugram & Nilgiri Baug WTP for Sinhastha Kumbh (the “Project”).

The Bond Issue Committee while making note that the Project for which the proceeds are being raised through issuance of Green Bonds is fit to be qualified as eligible green project as per categories suggested in relevant circular for issue of green debt securities and has approved the Issue of Green Bonds. CARE Analytics and Advisory Private Limited has conducted a review of the Green Bond Framework developed by NMC for the Project to be funded through the proposed Issue and provided a review report dated January 14, 2026 assuring the conformity of the Green Bond Framework with the (i) SEBI NCS Regulations; (ii) SEBI Master Circular; and (iii) the ICMA Green Bond Principles, 2025.

NMC’s offering will include up to 20,00,000 green municipal bonds, each with a face value of Rs 1,000 (“Green Bonds” or “Debentures”). The base size issue is Rs 100 crore, with an option to retain over-subscription up to Rs 100 crore (“Green Shoe Option”) aggregating up to Rs 200 crore (“Issue Size”). The Issue will open on Wednesday, February 25, 2026, and close on Monday, March 02, 2026#.The minimum application size for each application for Green Bonds would be Rs 10,000 (i.e., 10 NCDs comprising of 10 STRPP A , 10 STRPP B, 10 STRPP C, 10 STRPP D, 10 STRPP E, 10 STRPP F, 10 STRPP G and 10

STRPP H) and in multiple of Rs 1,000 (i.e., 1 NCD comprising of 1 STRPP A , 1 STRPP B, 1 STRPP C, 1 STRPP D, 1 STRPP E, 1 STRPP F, 1 STRPP G and 1 STRPP H) thereafter.

The terms of the Green Bonds offered in the Issue are as set out below:

The Corporation will be eligible to receive incentive of up to Rs 20 Crore for issuing green municipal bonds from Ministry of Housing and Urban Affairs, Government of India under Atal Mission for Rejuvenation and Urban Transmission 2.0 (“AMRUT 2.0”), pursuant to notification dated April 07, 2025, issued by the MoHUA, Government of India.

Under AMRUT 2.0, the first 20 urban local bodies on ‘first come, first serve’ basis during the mission period to issue municipal bonds, and in case of issuers who have already issued municipal bonds the subsequent bonds issued meeting the definition of green bonds by SEBI, will be eligible for incentives. An incentive of Rs 10 crore to be given for every Rs 100 crore of green bonds issued subject to a limit of Rs 20 crore per urban local body.

About Nashik Municipal Corporation (NMC): 

Nashik Municipal Corporation (NMC) is the municipal body of Nashik city. Presently, Smt. Himgauri Balasaheb Aher is the Mayor and Smt. Manisha Khatri (I.A.S.) is the Commissioner of Nashik Municipal Corporation.

Nashik Municipal Corporation is the governing body responsible for the administration and development of Nashik city in Maharashtra. It oversees urban planning, public services and infrastructure management. The Corporation ensures essential services such as water supply, waste management, healthcare and road maintenance.