NABKISAN Finance Limited, a subsidiary of the National Bank for Agriculture and Rural Development (NABARD), has listed India’s first Social Bond dedicated exclusively to the Water, Sanitation and Hygiene (WASH) sector on the National Stock Exchange (NSE) in Mumbai. The landmark listing highlights the growing role of sustainable finance in supporting development-oriented projects, particularly in rural and underserved communities.
The five-year Social Bond received a strong response from investors and was oversubscribed 1.8 times. Through the issue, NABKISAN raised ₹180 crore, with the funds earmarked for projects aimed at improving access to safe water, sanitation and hygiene facilities.
The bond carries a coupon rate of 8.10 per cent and is scheduled to mature in September 2031. It has received the highest domestic credit rating of CRISIL AAA (Stable) and CARE AAA (Stable), reflecting the strong credit profile assigned to the instrument by the rating agencies.
The proceeds from the bond will be used to expand WASH-related solutions among rural and underserved populations. Improved access to clean water, sanitation and hygiene is expected to contribute to better public health, stronger livelihoods and enhanced quality of life in communities where such infrastructure remains a critical development need.
The listing ceremony brought together representatives from NABARD, NABKISAN, Water.org, Trust Group and the NSE. The event featured addresses by representatives of the participating institutions and concluded with the ceremonial bell ringing at the stock exchange.
Dr. Shaji Krishnan V, Chairman of NABARD, highlighted the significance of innovative financing in addressing development priorities. He said that the successful issuance of the WASH Bond demonstrates how financial instruments can help mobilise resources for projects with significant social and developmental outcomes.
According to NABARD, investments in water and sanitation can have a wider impact on rural communities by supporting better health conditions, improving livelihoods and enhancing overall living standards. Development institutions can also play an important role in making such projects financially viable and helping attract participation from commercial investors and capital markets.
Shri Immanuvel Ganesan, Managing Director and CEO of NABKISAN, said the WASH Bond illustrates how capital-market instruments can be used to mobilise funding for development sectors while creating measurable social impact. He also noted that the strong investor participation indicates increasing confidence in sustainable finance as a mechanism for promoting inclusive rural development.
The transaction involved several stakeholders from the sustainable finance and capital market ecosystem. Water.org served as the Technical Advisor and Knowledge Partner, while market institutions, advisors, trustees and arrangers supported the transaction and its successful completion.
The bond listing comes at a time when sustainable and impact-oriented financing is gaining greater importance in addressing social and environmental priorities. By linking investment capital with projects focused on water, sanitation and hygiene, the instrument provides a financing avenue for development activities that directly affect communities.
The successful issuance also strengthens NABKISAN’s role in facilitating finance for rural development and supports NABARD’s broader efforts to promote innovative funding mechanisms. The WASH-focused Social Bond is expected to contribute to the development of India’s sustainable finance ecosystem while directing resources towards essential services in rural and underserved areas.
The listing of the bond marks another step towards integrating social-impact objectives with mainstream capital markets and demonstrates the potential of innovative financial instruments to support inclusive and sustainable development.
Author: Shivam
Proficient Writer Contact: [email protected]
