Mumbai, October 15, 2026: The National Bank for Agriculture and Rural Development (NABARD) has fully subscribed ₹4 crore to the National Skill Development Corporation’s (NSDC) maiden Zero Coupon Zero Principal (ZCZP) issue on the National Stock Exchange’s (NSE) Social Stock Exchange (SSE) platform. The funding will support a project aimed at creating overseas employment opportunities for 600 rural youth from Other Backward Classes (OBC) in Madhya Pradesh.

The project has an estimated outlay of ₹11.25 crore and is being implemented by NSDC in collaboration with the Government of Madhya Pradesh. Under the financing arrangement, the state government is expected to provide ₹5.60 crore in outcome-linked funding upon the achievement of agreed employment outcomes. The remaining amount is proposed to come from beneficiary contributions.

The programme will prepare rural youth for employment opportunities in Japan and Germany through language training, technical skill development, certification and cultural orientation. It will also provide support for overseas placement, including documentation and deployment assistance.

The project follows an outcome-based financing model, linking funding to verified employment results and sustained livelihood improvements rather than training completion alone. The approach is intended to connect rural candidates with international labour markets and improve income prospects for their households.

The Social Stock Exchange, established under the regulatory framework of the Securities and Exchange Board of India (SEBI), provides a platform for mobilising funds for social development initiatives. The ZCZP instrument allows organisations to raise funds for eligible social projects without creating repayment obligations for the implementing entity.

NABARD’s subscription is expected to contribute to the development of outcome-linked social finance models. The project also brings together a development finance institution, a government agency and a skills development organisation to fund employment-related outcomes for an underserved community.

The initiative may provide insights into the design and monitoring of outcome-based development programmes and the use of Social Stock Exchange instruments to finance projects across different social development sectors.