Nashik Municipal Corporation NCD

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.

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.

Nashik Municipal NCD – FAQs

1. What makes Nashik Municipal bonds "green"?
The bonds fund environmentally sustainable water infrastructure projects (Mukane WTP augmentation) certified by CARE Ratings per SEBI Green Bond norms and ICMA Green Bond Principles 2025.

2. What is the minimum investment amount?
Minimum application is ₹10,000 (10 NCDs), and thereafter in multiples of ₹1,000 (1 NCD).fintechbiznews+1

3. What is the coupon rate and payment frequency?
8.05% p.a. coupon paid half-yearly on the full ₹1,000 face value across all 8 STRPPs, delivering 8.20% effective yield.indiabonds+1

4. How does the STRPP structure work?
Each ₹1,000 NCD splits into 8 STRPPs (₹125 each) maturing sequentially from 3 to 10 years, providing staggered principal repayment while earning full coupon throughout.

5. Are these bonds safe?
As municipal corporation bonds, they carry sovereign-like safety perception backed by municipal revenues, property taxes and central/state grants, though technically unsecured.

6. Will I get ₹20 Cr government incentive?
No – the ₹20 Cr AMRUT 2.0 incentive goes to NMC, not investors. It improves project viability and indirectly supports bond repayment capacity.

7. Can I sell before maturity?
Yes, bonds will be listed on BSE & NSE and trade in demat form. However, municipal bonds often have low secondary liquidity.

8. Who should invest in Nashik green municipal bonds?
Investors seeking 8.20% fixed income with municipal safety, green/ESG credentials, and 3-10 year ladder may find this attractive vs FDs/corporate NCDs.