NABARD raises Rs 1,040.50 cr via 5-year social bonds at 7.63% coupon

The bonds have been rated 'AAA' by CRISIL and ICRA, the release said. The listing of these bonds will take place on the BSE

National Bank for Agriculture and Rural Development (NABARD) on September 26 raised Rs 1,040.50 crore through social bonds maturing in five years or on September 27, 2028, at a coupon rate of 7.63 percent, the financial institution said in a release.

"...total bids of Rs 8,590.50 crore. NABARD accepted Rs 1040.50 crore at a coupon rate of 7.63 percent," the release said.

NABARD has planned to raise Rs 3,000 crore, which had a base issue size of Rs 1,000 crore with an option to retain oversubscription up to Rs 2000 crore.

The bonds have been rated 'AAA' by CRISIL and ICRA, the release said. The listing of these bonds will take place on the BSE.

Arrangers to the issue are AK Capital Services, ICICI Securities Primary Dealership and Trust Investment Advisors Private Limited.

NABARD 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, the release added.

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, the release said.