Nashik Municipal Corporation (NMC) is launching India's first-ever green municipal bonds public issue, raising up to ₹200 crore (base ₹100 Cr + green shoe ₹100 Cr) at 8.05% coupon (effective yield 8.20% p.a.) to fund water infrastructure projects like the Mukane Water Supply Scheme augmentation.
Nashik Municipal Corporation NCD – Key Details
|
Parameter |
Details |
|
Issuer |
Nashik Municipal Corporation (NMC) |
|
Issue Size |
Base ₹100 Cr + Green Shoe ₹100 Cr = Up to ₹200 Cr |
|
Face Value |
₹1,000 per NCD (8 STRPPs × ₹125 each) |
|
Coupon Rate |
8.05% p.a. (half-yearly payments) |
|
Effective Yield |
8.20% p.a. (all categories) |
|
Issue Dates |
25 Feb – 2 Mar 2026 |
|
Credit Rating |
AA+ by CRISIL & ICRA |
|
Tenors |
3Y (STRPP A), 4Y (B), 5Y (C), 6Y (D), 7Y (E), 8Y (F), 9Y (G), 10Y (H) |
|
Minimum Investment |
₹10,000 (10 NCDs) |
|
Listing |
BSE & NSE |
|
Allotment |
First Come, First Serve (FCFS) |
|
Lead Manager |
A. K. Capital Services |
Proceeds use: Mukane Water Supply Scheme augmentation (Water Treatment Plant) + Vilholi to Gandhinagar gravity main + Sinhastha Kumbh WTP projects.
Unique STRPP Structure Explained
Each ₹1,000 NCD splits into 8 separately tradable & redeemable principal parts (STRPPs):
|
STRPP |
Tenor |
Face Value Per STRRP |
|
A |
3 Years |
₹125 |
|
B |
4 Years |
₹125 |
|
C |
5 Years |
₹125 |
|
D |
6 Years |
₹125 |
|
E |
7 Years |
₹125 |
|
F |
8 Years |
₹125 |
|
G |
9 Years |
₹125 |
|
H |
10 Years |
₹125 |
Half-yearly interest at 8.05% p.a. on full ₹1,000 face value across all tenors.
Subscription Status
| No. of Times Issue Subscribed (BSE + NSE) | ||||
| Institutional | Non-Institutional | Retail | Total | |
| NCD's Offered > | 6,00,000 | 2,50,000 | 1,50,000 | 10,00,000 |
| Feb 26, 2026 17:00 | 5.33x | 7.46x | 2.30x | 5.41x |
| Feb 27, 2026 17:00 | 5.92x | 5.90x | 2.51x | 5.40x |
Government Incentive: Up to ₹20 Cr Bonus
NMC qualifies for ₹20 crore incentive from MoHUA under AMRUT 2.0 for issuing green municipal bonds:
- ₹10 Cr per ₹100 Cr issued (first 20 ULBs on FCFS basis)
- Covers green bond framework certified by CARE Ratings per SEBI/ICMA normsglobalnewsonnetwork+1
How to apply for Nashik Municipal Corporation NCD
- Logging into Bondskart
- Entering bid details (series, quantity, price) and providing DP and bank/ASBA or UPI credentials.
- Approving the UPI mandate (for UPI‑based applications) to confirm the bid.
Allotment & checking status:
Allotment can be checked on BSE website using PAN / Aadhaar after finalisation; oversubscription retention often means higher chance of full allotment.
Strengths of Nashik Municipal NCD
- India's first green municipal bonds – pioneering infrastructure debt market.
- Attractive 8.20% effective yield vs most bank FDs/corporate NCDs.
- Government-backed municipal issuer with sovereign guarantee perception.
- AMRUT 2.0 ₹20 Cr incentive effectively boosts project economics.
- Separately tradable STRPPs offer tenure flexibility (3-10Y ladder).
- Essential water infrastructure project with stable cashflows.
- Listed on BSE/NSE providing secondary market liquidity.
Risks of Nashik Municipal NCD
- Unsecured NCDs – no specific project collateral beyond municipal revenues.
- Municipal revenue volatility dependent on property tax collections, grants.
- Longest tenor 10 years locks capital during uncertain rate environment.
- First-time issuer – limited track record of bond market performance.
- Interest rate risk – secondary prices fall if market rates rise.
- Liquidity risk – municipal bonds may trade thin even when listed.
- State/municipal political risks affecting repayment priority.
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