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Social bonds

Facts for Prelims (FFP)

 

Source: Business Line

 

Context: The National Bank for Agriculture and Rural Development (NABARD) has successfully raised Rs 1,040.50 crore through a five-year social bond.

  • The social bonds issued by NABARD have received ‘AAA’ ratings from CRISIL and ICRA, and they will be listed on the BSE (Bombay Stock Exchange).
  • NABARD recently introduced a Sustainability Bond Framework, aimed at financing and refinancing green and social projects.

 

Social bonds are a type 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.