Vadodara: Vadodara Municipal Corporation (VMC) showcased its experience in raising funds through municipal bonds and outlined its plans for a blue resilience bond at an international training programme organised by the United Nations Office for Disaster Risk Reduction (UNDRR) and the Climate Bonds Initiative (CBI) in Incheon, South Korea, from Oct 20 to 22.Municipal commissioner Arun Mahesh Babu and deputy municipal commissioner-cum-chief accountant Santosh Tiwari represented VMC at the programme, which brought together representatives from 12-13 countries to discuss disaster risk reduction, climate resilience and innovative financing for urban development through municipal bonds.Babu highlighted VMC’s journey from conventional municipal bonds to green bonds, emphasising the record subscription and the lowest interest rate achieved in the history of Indian municipal bonds. He also shared the challenges encountered during the bond issuance process and the measures adopted by the civic body to overcome them.According to VMC’s presentation, the corporation issued Asia’s first globally certified green municipal bond by an urban local body. The presentation also detailed the process of securing international certification and complying with post-issuance reporting requirements.Looking ahead, VMC is planning to issue a blue resilience bond to finance improvements in the city’s water infrastructure and strengthen long-term water security. Other initiatives highlighted during the programme included the Ajwa Safari project, the Vishwamitri river rejuvenation and conservation project and various water supply and sanitation works.Tiwari drew attention to Vadodara’s recurring flood challenges, the associated risks and the measures planned to mitigate them, underlining the importance of strengthening the city’s resilience to climate-related hazards.VMC’s presentations generated considerable interest among international participants. Representatives from Nigeria, Brazil, South Africa, Colombia, Panama and the Philippines expressed interest in seeking the corporation’s guidance and technical support for their future municipal bond issuances.As part of its knowledge-sharing initiative, Babu presented copies of ‘The Green Book‘ and ‘All About Municipal Bond‘ to the UNDRR team. Digital copies were also shared with participants to help other cities explore municipal bonds as a financing mechanism for urban infrastructure and civic development projects.
