The National Bank for Agriculture and Rural Development (Nabard) on Tuesday said it has issued India’s first ‘AAA’ rated Indian Rupee denominated Social Bonds aggregating ₹1,040.50 crore at a coupon rate of 7.63 per cent.

The bonds (redeemable, taxable, non-convertible, non priority sector, unsecured, social securities of face value ₹1 lakh each) of five-years tenure were issued privately to eligible institutional investors on September 26, as per the Development Finance Institution’s (DFI) statement.

These bonds are set to be listed on the Bombay Stock Exchange (BSE) on September 29, 2023.

The base issue size of the social bonds was ₹1,000 crore, with an option to retain oversubscription up to ₹2,000 crore. NABARD said it received bids aggregating ₹8,590.50 crore but accepted ₹1,040.50 crore at coupon rate of 7.63 per cent.

Sustainability Bond Framework

The DFI noted that it recently announced a Sustainability Bond Framework, which seeks to finance and refinance new or existing eligible green and social projects.

Eligible social projects include affordable basic infrastructure, access to essential services, affordable housing, employment generation, food security, socioeconomic advancement, and empowerment.

Projects that promise energy efficiency, including green buildings, energy storage, and smart grids, would also be eligible to get funding through the new breed of bonds that Nabard is rolling out.