NABKISAN Lists India’s First WASH Social Bond

NABKISAN Finance Ltd, a subsidiary of NABARD, listed India’s first social bond dedicated exclusively to the Water, Sanitation, and Hygiene sector on the National Stock Exchange in Mumbai on 2 October 2026. The issue raised ₹180 crore and was structured as a five-year bond with a coupon rate of 8.10% and maturity in September 2031.

Social Bonds

Social bonds are debt instruments used to raise funds for projects with defined social objectives. In India, such instruments are issued in the corporate bond market and are generally aligned with use-of-proceeds frameworks for sectors such as health, education, housing, and basic services.

WASH Sector

WASH is an acronym for Water, Sanitation, and Hygiene. The sector covers access to safe drinking water, sanitation facilities, and hygiene-related services, especially in rural and underserved communities.

Issue Features

The bond issue was oversubscribed 1.8 times, which means investor demand exceeded the amount offered. The instrument received CRISIL AAA (Stable) and CARE AAA (Stable) ratings, which are the highest domestic credit ratings assigned by these agencies.

Important Facts for Exams

• NABKISAN Finance Ltd is a subsidiary of NABARD, the National Bank for Agriculture and Rural Development.
• The bond was listed on the National Stock Exchange in Mumbai.
• Water.org acted as a technical advisor and knowledge partner for the transaction.
• Social bonds are part of the broader category of sustainable finance instruments, which also includes green bonds and sustainability bonds.

Use of Proceeds

The proceeds are intended for projects that expand access to safe water, sanitation, and hygiene in rural areas. The financing is linked to improvements in health outcomes, livelihoods, and quality of life through WASH infrastructure and services.