Nabard raises Rs. 1,040 crore
Nabard has issued India’s first ‘AAA’ rated Indian Rupee denominated Social Bonds aggregating Rs. 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 Rs. 1 lakh each) of five-years tenure were issued privately to eligible institutional investors, as per the Development Finance Institution’s (DFI) statement.
The base issue size of the social bonds was Rs. 1,000 crore, with an option to retain oversubscription up to Rs. 2,000 crore. NABARD said it received bids aggregating Rs. 8,590.50 crore but accepted Rs. 1,040.50 crore at coupon rate of 7.63 per cent.
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.
