NABARD lists Social Bonds on BSE

By Amigos IAS

Why is it in the news?

  • Recently, the National Bank for Agriculture and Rural Development (NABARD) has listed its ‘Social Bonds’ on the Bombay Stock Exchange (BSE) and raised ₹1,040 crore.
  • The funds generated from the Social Bonds will be utilized to refinance the Jal Jeevan Mission, a Union government project focused on providing drinking water in Telangana.

About Social bonds

  • Social bonds are atype of financial instrument or investment vehicle issued by governments, companies, or organizations to raise capital for projects or initiatives with a specific social or environmental purpose.
  • These bonds are typically designed to fund projects that have a positive impact on society or address social and environmental challenges.

 NABARD (National Bank for Agriculture and Rural Development)

  • NABARD is a development bank with a primary focus on the rural sector of India.
  • It serves as the apex banking institution responsible for providing finance for agriculture and rural development.
  • NABARD plays a pivotal role in the development of small industries, cottage industries, and various rural projects aimed at rural upliftment.
  • NABARD is a statutory body established in 1982 under the National Bank for Agriculture and Rural Development Act, 1981, passed by the Indian Parliament.

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