India’s 1st WASH-focused social bond listed towards sustainable, inclusive rural development

New Delhi: Finance Ministry on Saturday said that NABKISAN Finance Limited, a subsidiary of the National Bank for Agriculture and Rural Development (NABARD), listed India’s first Social Bond dedicated exclusively to the Water, Sanitation and Hygiene (WASH) sector on the National Stock Exchange (NSE).

The Social Bond issue was oversubscribed 1.8 times, enabling NABKISAN to raise Rs 180 crore.

The five-year bond carries a coupon rate of 8.10 per cent which matures in September 2031.

It has been assigned the highest domestic credit ratings of CRISIL AAA (Stable) and CARE AAA (Stable).

The listing of India’s first WASH-focused Social Bond reinforces NABARD’s and NABKISAN’s commitment to advancing innovative financing solutions that support sustainable and inclusive rural development, while deepening the country’s sustainable finance market.

According to the Finance Ministry, the proceeds will be deployed to expand access to safe water, sanitation and hygiene solutions across rural and underserved communities, contributing to improved health, livelihoods, and quality of life.

Dr Shaji Krishnan V, Chairman, NABARD, said the successful issuance of the WASH Bond demonstrates the potential of innovative financing mechanisms in addressing critical development priorities.

He highlighted that improved access to water and sanitation strengthens health, livelihoods and quality of life in rural areas, while development institutions play an important role in making such projects bankable and attracting wider participation from commercial and capital markets.

Immanuvel Ganesan, MD and CEO, NABKISAN, said the WASH Bond demonstrates how capital market instruments can mobilise resources for development sectors while delivering measurable social impact.

The strong investor response reflects growing confidence in sustainable finance as a means to advance inclusive and sustainable rural development, he added.

The transaction was supported by a wide range of stakeholders, including Water.org as Technical Advisor and Knowledge Partner, along with market institutions, advisors, trustees and arrangers who contributed to the successful issuance and listing of the bond, said the statement.

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