Social bonds are specialized financial instruments issued by governments, corporations, or international organizations to raise capital for projects that aim to create a positive social impact. The funds raised through these bonds are allocated to causes such as healthcare, education, poverty alleviation, and environmental sustainability.
Q1: Who issued the social bonds?
Answer: The issuer of the social bonds is the National Bank for Agriculture and Rural Development (NABARD).
Q2: When were the bonds issued?
Answer: These bonds were issued on September 26, 2023.
Q3: What is the total size of the issued bonds?
Answer: The total size of these bonds is Rs 1,040.50 crore.
Q4: What makes these bonds special?
Answer: They are India’s first externally certified AAA-rated INR social bonds, showcasing their credibility and reliability.
Q5: Where will these bonds be listed?
Answer: The bonds will be listed on the Bombay Stock Exchange (BSE) on September 29, 2023.
Q6: What is the redemption date?
Answer: The redemption date for these bonds is set for September 27, 2028.
Q7: How long should the bonds be held and when are coupon payments made?
Answer: Investors are required to hold the bonds for a period of five years, with coupon payments made annually.
Q8: What are the face value and issue size of the bonds?
Answer: Each bond has a face value of Rs 1,00,000, and the base issue size is Rs 1,000 crore.
Q9: How well were the bonds received by investors?
Answer: The bonds received an overwhelming response, with total bids amounting to Rs 8,590.50 crore.
Q10: What credit ratings have these bonds received?
Answer: The bonds have been rated AAA by CRISIL Ltd and ICRA Ltd, indicating their strong financial standing.
Q11: Why were these bonds issued?
Answer: These bonds aim to finance and refinance eligible green and social projects that promote sustainable development.
Q1. What are the benefits of investing in social bonds?
Answer: Investing in social bonds can provide a dual benefit of financial returns and contributing to social causes, such as education and healthcare, thereby fostering community development.
Q2. How do social bonds differ from traditional bonds?
Answer: Unlike traditional bonds that focus primarily on financial returns, social bonds specifically target projects with social benefits, addressing issues like poverty and environmental sustainability.
Q3. Who can invest in NABARD's social bonds?
Answer: NABARD's social bonds are open to a variety of investors, including institutional investors, banks, and individual investors looking to support social initiatives.
Q4. What is the significance of AAA ratings for social bonds?
Answer: AAA ratings signify a high level of creditworthiness and low risk, making these bonds attractive to investors seeking secure investment opportunities.
Q5. How will the funds from social bonds be utilized?
Answer: Funds from social bonds will be allocated to projects aimed at improving healthcare, education, and environmental sustainability, thereby enhancing societal well-being.
Question 1: What is the primary purpose of social bonds?
A) To fund corporate projects
B) To raise capital for social impact projects
C) To generate profits for shareholders
D) To finance government deficits
Correct Answer: B
Question 2: Which institution issued India’s first AAA-rated social bonds?
A) Reserve Bank of India
B) National Bank for Agriculture and Rural Development
C) Securities and Exchange Board of India
D) Indian Bank
Correct Answer: B
Question 3: When were NABARD's social bonds issued?
A) September 26, 2023
B) October 1, 2023
C) August 15, 2023
D) November 10, 2023
Correct Answer: A
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