Nabard raises crore through India's first social impact bond

29 Sep 2023 CW Team

The National Bank for Agriculture and Rural Development (Nabard) has successfully raised INR 1,041 crore through its five-year social impact bond, featuring a coupon rate of 7.63%. This issuance marks Nabard's debut in the realm of externally certified AAA-rated social bonds in India, as confirmed by the institution in an official statement. The bonds have received AAA ratings from both CRISIL and ICRA.

Nabard had initially set a base issue size of INR 1,000 crore, along with a green shoe option of an additional INR 2,000 crore. According to market observers, investors had sought a higher interest rate on this special bond. Still, Nabard was determined to maintain a coupon rate consistent with its existing bonds.

Ajay Manglunia, Managing Director and Head of the Investment Grade Group at JM Financial, explained, "In the morning, the yields were on the higher side, and Nabard's bond falls into the social sector special category. The investor base for such causes, particularly in ESG (Environmental, Social, and Governance), is relatively limited. Consequently, Nabard faced challenges in raising the required amount without offering a higher coupon."

He further added, "Investors were demanding slightly higher rates than those typically seen in Nabard's bonds. Considering the achieved pricing, it more or less aligns with the prevailing rates for Nabard's regular bonds."

Nabard's successful issuance of this social impact bond underlines the growing interest in socially responsible investments and demonstrates its commitment to supporting rural and agricultural development initiatives.

Infrastructure Urban

07 Jul 2026

IHC and Adani to Invest US$11.5 bn in Odisha Aluminium Project

Abu Dhabi's International Holding Company (IHC) will invest US$11.5 bn in an integrated aluminium project in the eastern Indian state of Odisha in a joint venture with the Adani Group, a state official said. The official said the announcement represented the country's largest foreign investment in mining and metallurgy. Officials said the venture would span both mining and metallurgical activities across several facilities in the state. The project has been described as integrated, encompassing upstream bauxite extraction and downstream smelting and metallurgy, and is intended to develop a com..

Air India and SIAEC to Explore MRO Joint Venture in India

Air India and SIA Engineering Company (SIAEC) have signed a memorandum of understanding (MoU) to explore the formation of a maintenance, repair and overhaul joint venture in India. The MoU, signed on Friday, will examine collaboration to develop India as a global aviation MRO hub and to serve growing needs across the Indian and regional markets. SIA Engineering Company, part of the Singapore Airlines Group which holds a 25.1 per cent stake in Air India, will bring technical expertise alongside Air India's established airline operations network. The partnership builds on existing cooperation be..

Assam and Centre Review Aviation Projects Push Silchar Airport Approval

Assam and the Centre on Thursday, July two reviewed a series of aviation infrastructure projects aimed at strengthening air connectivity across the state, with the proposed greenfield airport at Silchar emerging as a key priority. The review formed part of broader efforts to position Assam as a major aviation and logistics hub for the north east. Officials outlined timelines and preparatory work that they said would guide the next stages of project approvals. The Chief Minister met the Union Civil Aviation Minister at Rajiv Gandhi Bhavan in New Delhi and described the meeting as very productiv..