{"id":18980,"date":"2025-10-04T10:39:17","date_gmt":"2025-10-04T05:09:17","guid":{"rendered":"http:\/\/43.205.138.160\/?post_type=article&#038;p=18980"},"modified":"2025-10-04T10:39:17","modified_gmt":"2025-10-04T05:09:17","slug":"debt-ipo-subscribe-surat-municipal-corporation","status":"publish","type":"article","link":"https:\/\/signalz.pro\/article\/debt-ipo-subscribe-surat-municipal-corporation\/","title":{"rendered":"Debt IPO Subscribe &#8211; Surat Municipal Corporation"},"content":{"rendered":"<p dir=\"auto\">The Surat Municipal Corporation (SMC), the civic body governing Surat in Gujarat, India, is launching a public issue of green municipal bonds to raise up to \u20b9200 crore for funding sustainable urban infrastructure projects. This marks SMC&#8217;s first green bond issuance and only the second such public municipal bond effort by an Indian city (after Indore). The bonds are issued under the AMRUT 2.0 framework, making them eligible for central government incentives like credit enhancements for green projects.<\/p>\n<h3 dir=\"auto\">Key Issue Details<\/h3>\n<ul dir=\"auto\">\n<li><strong>Issue Size<\/strong>: Base of \u20b9100 crore, with a green shoe option of up to another \u20b9100 crore (total \u20b9200 crore).<\/li>\n<li><strong>Subscription Period<\/strong>: Opens on October 6, 2025, and closes on October 9, 2025.<\/li>\n<li><strong>Security Type<\/strong>: Secured, redeemable, non-convertible green municipal bonds.<\/li>\n<li><strong>Face Value<\/strong>: \u20b91,000 per bond (minimum investment: \u20b910,000, or 10 bonds).<\/li>\n<li><strong>Credit Rating<\/strong>: CRISIL AA+\/Stable and IND AA+\/Stable (indicating low credit risk due to SMC&#8217;s strong revenue base from property taxes and grants).<\/li>\n<li><strong>Listing<\/strong>: On BSE and NSE for secondary market trading post-allotment.<\/li>\n<li><strong>Lead Managers<\/strong>: A.K. Capital Services, Axis Capital, ICICI Securities, and Kotak Mahindra Bank<\/li>\n<\/ul>\n<h3 dir=\"auto\">Bond Series and Terms<\/h3>\n<p dir=\"auto\">The issue features two series in a 50:50 allocation ratio (for every \u20b91,000 invested, \u20b9500 goes to each series). Interest is paid semi-annually, with principal redemption at maturity.<\/p>\n<table style=\"height: 61px\" width=\"820\">\n<thead>\n<tr>\n<th data-col-size=\"sm\">Series<\/th>\n<th data-col-size=\"xl\">Tenure<\/th>\n<th data-col-size=\"md\">Coupon Rate<\/th>\n<th data-col-size=\"md\">Effective Yield<\/th>\n<th data-col-size=\"lg\">Maturity Date (from allotment)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td data-col-size=\"sm\">Series I<\/td>\n<td data-col-size=\"xl\">48 months (4 years)<\/td>\n<td data-col-size=\"md\">8.00% p.a.<\/td>\n<td data-col-size=\"md\">8.16% p.a.<\/td>\n<td data-col-size=\"lg\">October 2030<\/td>\n<\/tr>\n<tr>\n<td data-col-size=\"sm\">Series II<\/td>\n<td data-col-size=\"xl\">60 months (5 years)<\/td>\n<td data-col-size=\"md\">8.00% p.a.<\/td>\n<td data-col-size=\"md\">8.16% p.a.<\/td>\n<td data-col-size=\"lg\">October 2031<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 dir=\"auto\">Use of Proceeds and Green Projects<\/h3>\n<p dir=\"auto\">The funds will exclusively finance eligible green initiatives aligned with SMC&#8217;s Green Bond Framework, focusing on climate-resilient urban development:<\/p>\n<ul dir=\"auto\">\n<li>Installation of a 10 MW solar power plant in Banaskantha district.<\/li>\n<li>A 6.3 MW wind power plant in Morbi district.<\/li>\n<li>Development of an electric bus depot at Kosad.<\/li>\n<li>Construction of a dry and wet waste processing plant at Umber.<\/li>\n<li>Upgradation of water treatment plants at Variav and Rander.<\/li>\n<li>Construction of an intake well and transmission line at Variav.<\/li>\n<\/ul>\n<p dir=\"auto\">These projects aim to promote renewable energy, waste management, and water security, contributing to Surat&#8217;s sustainability goals.<\/p>\n<h3 dir=\"auto\"><strong>Any Put \/ Call options available?<\/strong><\/h3>\n<p dir=\"auto\">No, the Surat Municipal Corporation green bonds do not include any call or put options, meaning they are neither callable by the issuer nor puttable by the bondholder. Redemption is strictly scheduled at maturity (October 2030 for Series I and October 2031 for Series II), with no provisions for early or optional redemption mentioned in the offer document.<\/p>\n<h3 dir=\"auto\"><strong>Quick Facts below:<\/strong><\/h3>\n<p dir=\"auto\"><a href=\"http:\/\/43.205.138.160\/wp-content\/uploads\/2025\/10\/Surat_Municipal_Corp_Muni_Bond_IPO_Issue_OCT_06_2025.pdf\">Surat_Municipal_Corp_Muni_Bond_IPO_Issue_OCT_06_2025<\/a><\/p>\n","protected":false},"template":"","article-category":[],"article-tags":[820,822,821,824,823],"class_list":["post-18980","article","type-article","status-publish","hentry","article-tags-bonds","article-tags-creditrating","article-tags-fixedincome","article-tags-goodyield","article-tags-investmentgrade"],"acf":[],"_links":{"self":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/article\/18980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/article"}],"about":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/types\/article"}],"wp:attachment":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/media?parent=18980"}],"wp:term":[{"taxonomy":"article-category","embeddable":true,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/article-category?post=18980"},{"taxonomy":"article-tags","embeddable":true,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/article-tags?post=18980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}