Mumbai, June 1 -- The BMC has moved a step closer to launching its maiden Rs.1,000-crore green bond issue, with 13 banks and financial institutions submitting bids to act as merchant banker for the proposed fundraising exercise. This is a significant step in the civic body's first green bond tender, which is targeted for launch in December. The civic body had floated a tender on May 22 to appoint a lead manager for the bond issue. Officials said bids were received from 13 institutions, including HDFC Bank, YES Bank and SBI Capital Markets, after a pre-bid process that addressed queries from interested participants. The appointment of a merchant banker is a crucial step in the civic body's first-ever foray into the debt market. The selected agency will be tasked with structuring the bond issue, determining pricing and guiding the corporation through the issuance process. Announced in the BMC's 2026-27 budget, the green bond programme is aimed at generating an alternative stream of funds for environment-focused infrastructure projects. The proposed utilisation plan includes the Gargai dam project, seven sewage treatment plants and the city's desalination project. Officials estimate BMC's infrastructure liabilities at around Rs.2.40 lakh crore and have indicated that a significant portion of its fixed deposits is already committed to ongoing projects. According to civic officials, tapping the debt market will help meet future funding requirements for projects that will be executed over several years....