NABKISAN Lists India’s First WASH Social Bond

NABKISAN Finance Limited, a subsidiary of NABARD, listed India’s first social bond dedicated exclusively to the Water, Sanitation and Hygiene (WASH) sector on the National Stock Exchange (NSE), Mumbai, on 2 October 2026.

The bond issue raised ₹180 crore and has a tenure of five years. It carries a coupon rate of 8.10% and will mature in September 2031.

What is a WASH Social Bond?

WASH stands for:

• W – Water
• S – Sanitation
• H – Hygiene

A social bond is a debt instrument used to raise funds for projects that have clearly defined social objectives.

In this case, the funds raised will be used to support projects that improve access to:

• Safe drinking water
• Sanitation facilities
• Hygiene-related services
• Rural and underserved communities

Key Features of the Bond

The bond issue received strong investor interest and was oversubscribed 1.8 times, indicating demand higher than the amount offered.

It also received the highest domestic credit ratings from leading rating agencies:

• CRISIL AAA (Stable)
• CARE AAA (Stable)

These ratings indicate a very high degree of safety with respect to timely servicing of financial obligations.

Role of Water.org

Water.org acted as the technical advisor and knowledge partner for the transaction.

Its involvement supported the structuring of the bond around projects linked to safe water, sanitation and hygiene services.

Use of Bond Proceeds

The proceeds from the bond will be used to finance projects that expand access to safe water, sanitation and hygiene infrastructure, especially in rural areas.

Such investments are expected to contribute to:

• Better public health outcomes
• Improved quality of life
• Stronger rural livelihoods
• Reduced vulnerability in underserved communities

Importance of the Issue

The bond is significant because it combines social finance with development of basic services.

It also adds to the growing use of sustainable finance instruments in India, such as:

• Green bonds
• Social bonds
• Sustainability bonds