The bank recently announced a Sustainability Bond Framework, which seeks to finance and refinance new or existing eligible green and social projects, it said
National Bank for Agriculture and Rural Development (NABARD) on Tuesday said it has issued social bonds worth Rs 1,040.5 crore.
The move marks its first externally certified AAA-rated social bonds in the country, NABARD said in a statement. AAA-rated bonds fall under the highest rated category.
The five-year bonds, issued privately to eligible institutional investors, are set to be listed on the Bombay Stock Exchange on September 29, it said.
As the country's apex development financial institution, NABARD is leading the way in sustainable finance, as per the statement.
It recently announced a Sustainability Bond Framework, which seeks to finance and refinance new or existing eligible green and social projects, it said.
Eligible social projects include affordable basic infrastructure, access to essential services, affordable housing, employment generation, food security, socioeconomic advancement, and empowerment, the statement said.
Projects that promise energy efficiency, including green buildings, energy storage, and smart grids, would also be eligible to get funding through the new breed of bonds that NABARD is rolling out, NABARD said.
The redemption date for the bonds is on September 27, 2028, it said, adding that the bonds are to be held for a period of five years with annual coupon payment.
The issuance has generated overwhelming response from institutional investors, resulting in total bids of Rs 8,590.50 crore but NABARD accepted bids worth Rs 1,040.50 crore at a coupon rate of 7.63 per cent.