Mumbai: NABKISAN Finance Limited, a subsidiary of the National Bank for Agriculture and Rural Development (NABARD), has raised ₹180 crore through India’s first Social Bond focused exclusively on the Water, Sanitation and Hygiene (WASH) sector.
The bond was listed on the National Stock Exchange (NSE) in Mumbai on October 1, following an issue that was oversubscribed 1.8 times.
Five-Year Bond Carries 8.10% Coupon Rate
The five-year bond carries a coupon rate of 8.10% and is scheduled to mature in September 2031. The issue has received CRISIL AAA (Stable) and CARE AAA (Stable) ratings.
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The proceeds will be used to expand access to safe water, sanitation and hygiene solutions in rural and underserved communities.
NABARD Chairman Highlights Development Financing
NABARD Chairman Dr. Shaji Krishnan V said the successful issuance demonstrated the potential of innovative financing mechanisms for development priorities.
He highlighted the role of improved water and sanitation access in strengthening health, livelihoods and quality of life in rural areas. He also said development institutions can help make such projects bankable and attract participation from commercial and capital markets.
NABKISAN MD and CEO Immanuvel Ganesan said the bond demonstrated how capital-market instruments could mobilise resources for development sectors while generating measurable social impact.
Water.org Supported Bond as Technical Advisor
The transaction involved several stakeholders, with Water.org serving as Technical Advisor and Knowledge Partner. Market institutions, advisors, trustees and arrangers also participated in the issuance and listing process.
The listing ceremony in Mumbai included addresses by representatives of NABARD, NABKISAN, Water.org, Trust Group and NSE, followed by the ceremonial bell ringing.
WASH Financing Linked to Rural Development
The listing of the WASH-focused Social Bond adds a dedicated financing instrument for water, sanitation and hygiene-related projects serving rural and underserved communities.
NABARD and NABKISAN said the initiative is part of their efforts to use innovative financing mechanisms for sustainable and inclusive rural development and to deepen India’s sustainable finance market.
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