Nashik Municipal Corporation Announces its Maiden Public Issue of Green Municipal Bonds

POSTED BY : MRUNALI SAKPAL DT .24/02/2026 📞  8850212023

MUMBAI RMN.IN(E) 

Public Issue of Rated, Listed, Taxable, Unsecured, Redeemable, Non-Convertible Green Municipal Bonds in the nature of debentures of face value of ₹ 1,000 each (comprising 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 ₹ 125/- (Rupees One Hundred Twenty Five) each with a base issue size of ₹ 100 crore with an option to retain oversubscription up to ₹100 crore aggregating up to ₹ 200 crore (“Issue”)

• Issue opens on Wednesday, February 25, 2026 and closes on Monday, March 02, 2026#
• Effective Yield up to 20% p.a. and Coupon rate of 8.05% p.a. payable half-yearly*
• Green Bonds are rated as ‘Provisional IND AA+/Stable’ by India Ratings and Research Private Limited and ‘Provisional CRISIL AA+/Stable’ by CRISIL Ratings Limited.
• CARE Analytics and Advisory Private Limited as Third Party Reviewer has issued a Third Party Review Report dated January 14, 2026 on the Green Bond Framework, assuring the “Green Bond Framework” is in accordance with the (i) SEBI NCS Regulations; (ii) SEBI Master Circular; and (iii) the ICMA Green Bond Principles, 2025.
• NCDs are proposed to be listed on National Stock Exchange of India Limited and BSE
• Tenor: 3 years (STRPP A), 4 years (STRPP B), 5 years (STRPP C), 6 years (STRPP D), 7 years (STRPP E), 8 years (STRPP F), 9 years (STRPP G) and 10 years (STRPP H), with half yearly coupon payment options.
• Trading in dematerialized form
• Allotment by First Come First Serve Basis**

Mumbai, February 24, 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 ₹ 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 ₹ 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.

1. 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 ₹ 1,000 (“Green Bonds” or “Debentures”). The base size issue is ₹ 100 crore, with an option to retain over-subscription up to ₹ 100 crore (“Green Shoe Option”) aggregating up to ₹ 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 ₹ 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 ₹ 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 ₹ 10 crore to be given for every ₹ 100 crore of green bonds issued subject to a limit of ₹ 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.

(Please scan the above QR code to view the Offer Document)

Disclaimers:

 Capitalized words not defined herein shall have the meaning ascribed to them in Offer Document.

*For further details refer to section titled “Issue Specific Information” on page 72 of the Offer Document dated February 20, 2026.

**Allotment in the public issue of debt securities should be made on the basis of date of upload of each application into the electronic book of the Stock Exchanges. However, on the date of oversubscription and thereafter, the allotments should be made to the applicants on proportionate basis.

#The Issue shall remain open for subscription on Working Days from 10:00 a.m. to 5:00 p.m. (Indian Standard Time) during the period indicated in the Offer Document above, except that the Issue may close on such earlier date, subject to a minimum of three Working Days from the date of opening of the Issue, in accordance with the SEBI ILMDS Regulations or extended date as may be decided by the Bond Issue Committee, subject to relevant approvals and in accordance with applicable laws. In the event of an early closure or extension of the Issue, our Corporation shall ensure that notice of the same is provided to the prospective investors through an advertisement in a national daily newspaper with wide circulation and a regional daily with wide circulation where the head office of the Corporation is located in which the pre-issue advertisement for opening of the Issue is given, on or before such initial date of closure, in accordance with SEBI ILMDS Regulations. On the Issue Closing Date, the Application Forms will be accepted only between 10.00 a.m. and 3.00 p.m. (Indian Standard Time) and uploaded until 5.00 p.m. or such extended time as may be permitted by the Stock Exchanges. Further, pending mandate requests for bids placed on the last day of bidding will be validated by 5.00 p.m. (Indian Standard Time) on the Issue Closing Date. For further details please refer to the chapter titled “Issue Specific Information” on page 72 of the Offer Document.

Nashik Municipal Corporation (“NMC”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a public offer of rated, listed, taxable, unsecured, redeemable, non-convertible green municipal bonds in the nature of debentures (“Green Bonds”/ “Debentures”/ “NCDs”). This announcement does not constitute an offer to sell or solicitation of an offer or invitation to buy any securities in any jurisdiction. Investment in the NCDs involves a degree of risk. Investors should see the offer document dated February 20, 2026 of NMC (“Offer Document ”) filed with the BSE Limited (“BSE”), National Stock Exchange of India Ltd.(“NSE”) and Securities and Exchange Board of India (“SEBI”), including the section titled “Risk Factors” beginning on page 18 of the Offer Document, available on the websites of [BSE at www.bseindia.com, NSE at www.nseindia.com], SEBI at www.sebi.gov.in and the websites of the Issuer at www.nmc.gov.in and the Lead Manager at www.akgroup.co.in.

Listing: The Green Bonds offered through this Offer Document are proposed to be listed on the National Stock Exchange of India Limited (“NSE”) and BSE Limited (“BSE”, collectively with NSE the “Stock Exchanges”). The Issuer has received in-principle approvals for listing of the Green Bonds to be allotted pursuant to the Issue from NSE and BSE through their letters dated February

02, 2026 bearing no. NSE/LIST/D/2026/0012 and February 03, 2026 bearing no. DCS/HB/PI-BOND/04/25-26, respectively. For the purposes of the Issue, the Designated Stock Exchange is National Stock Exchange of India Limited.

General Risk: Investment in non-convertible securities is risky, and investors should not invest any funds in such securities unless they can afford to take the risks attached to such investments. Investors are advised to take an informed decision and to read the risk factors carefully before investing in this Issue. For taking an investment decision, the investors must rely on their own examination of the Issuer, the Offer Document to be issued and the issue including the risks involved in it. Specific attention of investors is invited to the statement of risk factors contained in the section titled “Risk Factors” on page 18 of the Offer Document. These risks are not, and are not intended to be, a complete list of all risks and considerations relevant to the Green Bonds or investor’s decision to purchase such Green Bonds. The Issue of Green Bonds has not been recommended or approved by SEBI nor does SEBI guarantee the accuracy or adequacy of this Offer Document.

Disclaimer Clause of Government of Maharashtra: It is to be distinctly understood that the Offer Document should not in any way be deemed or construed to have been approved by Government of Maharashtra. Government of Maharashtra does not take any responsibility either for the financial soundness of any project for which this issue is proposed to be made or for the corre ctness of the statements made or opinions expressed in this offer document.

Disclaimer Clause of NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the ‘Dis claimer Clause of NSE’.

Disclaimer Clause of BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the Draft Offer Document has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Draft Offer Document. The investors are advised to refer to the Draft Offer Document/Offer Document for full text of the Disclaimer clause of the BSE Limited.

Disclaimer of CRISIL Ratings Limited: Crisil Ratings Limited (CRISIL Ratings) has taken due care and caution in preparing the material based on the information provided by its client and / or obtained by CRISIL Ratings from sources which it considers reliable (Information). A rating by CRISIL Ratings reflects its current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL Ratings. CRISIL Ratings does not guarantee the completeness or accuracy of the information on which the rating is based. A rating by CRISIL Ratings is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. The rating is not a recommendation to invest / disinvest in any entity covered in the material and no part of the material should be construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation. CRISIL Ratings especially states that it has no liability whatsoever to the subscribers / users / transmitters/ distributors of the material. Without limiting the generality of the foregoing, nothing in the material is to be construed as CRISIL Ratings providing or intending to provi de any services in jurisdictions where CRISIL Ratings does not have the necessary permission and/or registration to carry out its business activities in this regard. Nashik Municipal Corporation will be responsible for ensuring compliances and consequences of non-compliances for use of the material or part thereof outside India. Current rating status and CRISIL Ratings’ rating criteria are available without charge to the public on the website, www.crisilratings.com. For the latest rating information on any instrument of any company rated by Crisil Ratings, please contact customer service helpdesk at 1800-267-3850.

Disclaimer of India Ratings and Research Private Limited: India Ratings & Research Private Limited (“India Ratings”) relies on information obtained from multiple sources and there may be instances where the information is not accurate/incomplete, despi te efforts been taken to verify the same. Ultimately, the issuer /its advisers are responsible for the accuracy of the information they provide to India Ratings and to the market in offering documents and other reports. In issuing its rating, India Ratings relies on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings can be affected by future events or conditions that may not have been anticipated at the time a rating was issued or affirmed. It needs to be noted that ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security of any issuer. Credit ratings do not comment on the adequacy of market price, the suitability of any investment, loan or security for a particular investor (inclu ding without limitation, any accounting and/or regulatory treatment), or the tax-exempt nature or taxability of payments made in respect of any investment, loan or security. The rating agency shall neither construed to be nor acting under the capacity or nature of an ‘expert’ as defined under section 2(38) of the Companies Act, 2013. India Ratings does not provide any financial, legal, auditing, accoun ting, appraisal, valuation or actuarial services in any manner. A rating should not be viewed as a replacement for such advice or services. Investors may find our ratings to be important information, and India Ratings notes that you are responsible for communicatin g the contents of this letter, and any changes with respect to the rating, to investors.

Disclaimer of Third Party Agency for Green Certification: Care Analytics and Advisory Private Limited should not be construed as an ESG rating provider as defined under regulation 28b(c) of the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999, as amended from time to time. Please refer to third party review report annexed in the Offer Document as Annexure VIII for the detailed disclaimer.