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PCMC Earns AA+ Stable Rating For Proposed Green Municipal Bonds

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PCMC earns AA+ stable rating for proposed Green Municipal Bonds

Photo: PCMC Commissioner Shekhar Singh/ X

By Amika

Mycitynews Service, July 10

Pimpri: The Pimpri Chinchwad Municipal Corporation (PCMC) has achieved a significant milestone by securing the prestigious AA+ stable credit rating from CRISIL Ratings for its proposed Rs 200 crore green municipal bonds. This achievement complements PCMC's existing reaffirmed AA+ stable credit rating for its Rs 200 crore municipal bond program. The new AA+ stable credit rating issued on July 4 for its green bond initiative underscores PCMC's robust financial health and strategic governance.

The funds raised through these green municipal bonds will be dedicated to initiatives promoting environmental sustainability and improving urban mobility. Specifically, PCMC intends to allocate resources towards non-motorized transport projects in the city, including developing cycling lanes, pedestrian-friendly infrastructure, and other sustainable transportation endeavours. By prioritizing non-motorized transport solutions, PCMC aims to mitigate carbon emissions, ease traffic congestion, and enhance overall air quality across Pimpri Chinchwad, stated a press release.

PCMC Commissioner Shekhar Singh said, "Securing the AA+ stable rating for our proposed green municipal bonds is an indicator of our commitment to sustainable development and sound financial management. We are dedicated to creating a greener, healthier urban environment for our residents, and these funds will play a crucial role in realizing our vision for a more sustainable Pimpri Chinchwad."

PCMC's consistent AA+ stable credit rating reflects its commitment to transparent financial management and governance practices, reinforcing investor confidence in its ability to efficiently manage resources while fulfilling its commitment to improving residents' quality of life, the release added.

Importance of AA+ stable rating from CRISIL for PCMC's Green Municipal Bonds

1. High Creditworthiness: An AA+ stable rating indicates strong financial health and a low risk of default.

2. Investor Confidence: The rating assures investors of PCMC's ability to manage and repay the funds efficiently, increasing their willingness to invest.

3. Lower Borrowing Costs: A high credit rating often leads to lower interest rates on bonds, reducing the overall cost of borrowing for PCMC.

4. Support for Sustainability: The funds raised through these green municipal bonds will be allocated to environmentally sustainable projects, such as non-motorized transport infrastructure, promoting long-term urban sustainability.

5. Enhanced Urban Mobility: Investments in cycling lanes, pedestrian-friendly infrastructure, and other sustainable transport solutions will improve urban mobility, reduce traffic congestion, and lower carbon emissions.

6. Improved Air Quality: By prioritizing non-motorized transport, PCMC aims to enhance air quality across Pimpri Chinchwad, benefiting public health and the environment.

7. Attraction of Further Investment: A high rating can attract more investors and partners, encouraging further investment in Pimpri Chinchwad's sustainable development projects.

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