Why in the News?
- NABKISAN Finance Limited, a subsidiary of NABARD, listed India’s first Social Bond exclusively focused on Water, Sanitation and Hygiene (WASH) on the National Stock Exchange (NSE) on 1 October 2026.
- The issue raised ₹180 crore and was oversubscribed 1.8 times.
Key Highlights
- Issuer: NABKISAN Finance Limited.
- Parent institution: National Bank for Agriculture and Rural Development (NABARD).
- Sector: Water, Sanitation and Hygiene (WASH).
- Amount raised: ₹180 crore.
- Oversubscription: 1.8 times.
- Tenure: 5 years.
- Coupon rate: 8.10%.
- Maturity: September 2031.
- Credit ratings: CRISIL AAA (Stable) and CARE AAA (Stable).
- Listed on the National Stock Exchange (NSE), Mumbai.
Use of Bond Proceeds
- Funds will support access to:
- Safe water
- Sanitation
- Hygiene solutions
- Target beneficiaries include rural and underserved communities.
- Expected development outcomes include improved:
- Health
- Livelihoods
- Quality of life
- Demonstrates the use of capital-market instruments for social development financing.
Institutional Support
- Water.org: Technical Advisor and Knowledge Partner.
- Other stakeholders included market institutions, advisors, trustees and arrangers.
- The bond is intended to deepen India’s sustainable finance market.
Important Full Forms
- WASH: Water, Sanitation and Hygiene
- NABKISAN: NABKISAN Finance Limited
- NABARD: National Bank for Agriculture and Rural Development
- NSE: National Stock Exchange
- CRISIL: Credit Rating Information Services of India Limited
- CARE: Credit Analysis and Research
UPSC Prelims Trap
- NABKISAN, not NABARD directly, issued the bond.
- It is a Social Bond, specifically focused on WASH, not a conventional government bond.
- ₹180 crore is the amount raised, while 1.8 times refers to the level of oversubscription.
- 8.10% is the coupon rate, while September 2031 is the maturity period.
