It was issued under the Swachh Bharat Mission-Urban, raising ₹150 crore for the development of a cutting-edge Tertiary Sewage Treatment Plant (TSTP).
- TSTP ensures that treated water meets the highest standards, making it suitable for reuse in industrial processes.
- The TSTP was developed under the Public-Private Hybrid Annuity Model (PPP-HAM), with 40% municipal funding.
Green Municipal Bond (GMB)
- Municipal bonds refer to non-convertible debt securities issued by a municipal body or another entity that is established for such purposes and entrusted with functions under Article 243W of the Indian Constitution.
- Green bonds are used to raise funds specifically for the climate mitigation, adaptation and other environment friendly and low carbon projects (World Bank).
Significance of GMB
- Sustainable development: Investors are increasingly focused on integrating Environment, Social and Governance (ESG) factors into their investment processes.
- Low cost, long term capital: They are cost-competitive with other bonds and can provide capital at a lower cost than commercial bank loans.
- Broaden investor base: As existing traditional financing sources such as domestic bank loans are not sufficient to support capacity addition.
