Mumbai (Maharashtra) [India], October 3 : NABKISAN Finance Limited has raised Rs 180 crore through India’s first social bond dedicated exclusively to water, sanitation and hygiene (WASH), with the issue subscribed 1.8 times, the Finance Ministry said on Saturday.
The five-year bond, listed on the National Stock Exchange on October 1, carries an 8.10 per cent coupon and will mature in September 2031. It has been rated CRISIL AAA (Stable) and CARE AAA (Stable).
The proceeds will be used to finance access to safe water, sanitation and hygiene solutions in rural and underserved communities, marking an attempt to channel capital-market funding into a development segment that has traditionally relied heavily on public and institutional financing.
The strong subscription also points to investor appetite for social-impact debt instruments as India’s sustainable finance market expands beyond green bonds into more narrowly targeted social sectors.
NABKISAN is a subsidiary of the National Bank for Agriculture and Rural Development (NABARD).
“The successful issuance of the WASH Bond demonstrates the potential of innovative financing mechanisms in addressing critical development priorities,” NABARD Chairman Shaji Krishnan V said.
He said better access to water and sanitation strengthens health, livelihoods and quality of life in rural areas, while development institutions can help make such projects bankable and attract wider participation from commercial and capital markets.
NABKISAN MD and CEO Immanuvel Ganesan said the transaction showed how capital-market instruments could 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,” Ganesan said.
Water.org acted as technical advisor and knowledge partner for the transaction, while market institutions, advisors, trustees and arrangers also supported the issuance and listing.
The Finance Ministry said the bond listing reinforces NABARD and NABKISAN’s efforts to develop financing solutions for sustainable and inclusive rural development while deepening India’s sustainable finance market.