Varthana, a Bengaluru-based Non-Banking Financial Company (NBFC), has secured approximately $2.5 million through a social bond issued in collaboration with funding and asset management firm Symbiotics Investments. Varthana specializes in offering affordable education loans to both schools and students. Social bonds are financial instruments aimed at raising funds for socially beneficial projects, such as those related to education, healthcare, and environmental sustainability.

The funds generated from this bond will be used by Varthana to support the development of infrastructure, construction, and the acquisition of equipment for schools in semi-urban and rural areas. The projects financed by these loans primarily involve primary and secondary schools focusing on vocational training.

“The low-budget schools in which we invest are counting on inclusive financial services to get back on the growth path following the unprecedented challenges faced during the pandemic. We are thankful to Symbiotics for their support, which enhances Varthana’s ability to play a constructive role in helping with the post-COVID-19 recovery and ongoing improvement of schools throughout the country,” said Steve Hardgrave, Co-founder and Chief Executive Officer (CEO) of Varthana Finance.

“With this education-focused bond, Symbiotics Investments opens the door for international investors to contribute to the expansion of the education sector in India and directly invest in the future generation of this vibrant country,” said Prashant Bhardwaj, Symbiotics Investments Regional Manager South Asia.

The education-focused bond was issued through Symbiotics’ sponsored bond issuance platform, Micro, Small & Medium Enterprises Bonds S.A., under its Sustainable Bond Framework. This framework received certification from DNV GL in December 2019 and November 2021. The bond is listed on the Securities Official List of the Luxembourg Stock Exchange and featured on the Luxembourg Green Exchange.