Description

Listing of 8% secured rated listed redeemable non-convertible green municipal bonds (debentures) worth Rs. 200 Crore by Surat Municipal Corporation with maturity dates in 2029 and 2030.

Summary

Surat Municipal Corporation has listed secured redeemable non-convertible green municipal bonds (debentures) on BSE totaling Rs. 200 Crore. The issue comprises two tranches with 8% coupon rate: Tranche A (Rs. 100 Crore) maturing on October 13, 2029, and Tranche B (Rs. 100 Crore) maturing on October 13, 2030. Both tranches were allotted on October 13, 2025, with provisional IND AA+/Stable ratings from India Ratings and Research Private Limited and provisional CRISIL ratings.

Key Points

  • Total issue size: Rs. 200 Crore across two tranches
  • Each tranche consists of 20,00,000 debentures with face value of Rs. 500 each
  • Coupon rate: 8.00% per annum for both tranches
  • Interest payment: Half-yearly on April 13 and October 13 every year
  • Tranche A (ISIN: INE05NX24023) matures on October 13, 2029
  • Tranche B (ISIN: INE05NX24031) matures on October 13, 2030
  • Credit rating: Provisional IND AA+/Stable (India Ratings) and Provisional CRISIL rating
  • Rating date: September 15, 2025 and September 4, 2025
  • No put/call options available
  • Listing fees: Rs. 1,90,800 (after GST and TDS adjustments)

Regulatory Changes

No regulatory changes announced. This is a standard listing notification for municipal debt securities.

Compliance Requirements

  • Surat Municipal Corporation must comply with standard listing agreement requirements for debt securities
  • Half-yearly interest payments must be made on April 13 and October 13 of each year
  • Redemption of Tranche A debentures on October 13, 2029
  • Redemption of Tranche B debentures on October 13, 2030
  • Maintenance of security cover as per the terms of secured debentures

Important Dates

  • Date of Allotment: October 13, 2025
  • Interest Payment Dates: April 13 and October 13 (every year, half-yearly)
  • Tranche A Redemption Date: October 13, 2029
  • Tranche B Redemption Date: October 13, 2030
  • Rating Dates: September 4, 2025 and September 15, 2025

Impact Assessment

This listing has minimal market-wide impact as it pertains to municipal debt securities with a specific investor base. The issuance of green municipal bonds by Surat Municipal Corporation provides debt market participants with an investment option in rated municipal securities. The provisional IND AA+/Stable rating indicates strong creditworthiness. The 8% coupon rate and half-yearly interest payments offer predictable returns for fixed-income investors. This listing expands the municipal bond market and provides funding for green initiatives by Surat Municipal Corporation.

Impact Justification

Routine municipal bond listing with limited market-wide impact; affects debt market participants interested in municipal securities