The National Bank for Agriculture and Rural Development (NABARD) has announced plans to raise Rs 10,000 crore through a combination of infrastructure and green bonds.
This initiative aligns with NABARD’s green taxonomy and climate strategy for 2030, focusing on sustainable investments in India’s rural economy. The bonds will have a duration of over 10 years and will support both infrastructure and green initiatives.This move follows NABARD’s successful issuance of social impact bonds last year, raising Rs 1,040.50 crore. The new bonds aim to further support NABARD’s mission of fostering sustainable development in rural areas.
In addition to the green bonds, NABARD has launched the AgriSURE Fund, aiming to support around 80 to 100 agri startups in the next five years. The fund will focus on startups working towards the development of agriculture-boosting ideas and plans, with a ticket size of eight to 10 crores. Priority areas for selecting startups include climate resilience, organic farming, and agricultural rural enterprises.
The AgriSURE Fund includes both direct investments and a fund-of-funds model. The focus will be on impact funding, blending equity with a capital fund approach. The selection of startups will involve a transparent process, with an investment committee to evaluate proposals, and collaboration with agricultural universities, state government departments, and other stakeholders to identify the most promising innovations.
Through these initiatives, NABARD aims to accelerate the growth of startups in the agri ecosystem, increase and sustain capital commitments to sector-specific AIFs, and encourage young entrepreneurs with innovative, technology-driven ideas. By attracting more investment in the agri and rural startup ecosystem, NABARD seeks to create an investment-friendly climate for startups related to agriculture and allied activitie.These efforts are expected to contribute significantly to the development of rural infrastructure and the promotion of sustainable agricultural practices in India.
NABARD Plans to Raise Rs 10000 Crore with Green Bonds
