Samunnati issues Rs 50 Cr green bond to boost climate-smart agriculture

Samunnati, an agri value chain enabler, has issued its first-ever Rs 50 crore green bond, with Northern Arc Capital as the primary subscriber.

Samunnati will use the green bond proceeds to develop climate-smart agriculture solutions across various agricultural value chains in India, supporting its mission to empower smallholder farmers and advance sustainable development.

"This is a significant milestone Samunnati’s team has achieved so far towards sustainable finance and environmental responsibility. The funds raised will support adoption of climate-smart agriculture solutions across different agriculture value chains in the country," said Anil Kumar, CEO and Founder of Samunnati, in a statement.

"Partnering with Northern Arc Capital marks a significant step towards empowering rural communities and building a greener future. Northern Arc's subscription underscores the confidence they have placed in Samunnati's vision and reinforces the collective efforts toward creating a positive environmental impact," he added.

Founded in 2014, Samunnati provides financial, co-financial, and non-financial solutions to marginal, small, and medium farmers, agri-enterprises, and wholesale/retailers. With a presence in over 100 agri-value chains across 23 states, Samunnati connects to over 6,500+ farmer collectives. It aims to impact one in every four farming households by 2027.

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The company is backed by investors including USDFC, Credit Saison, Tata Capital, Poonawalla, Hinduja Leyland Finance, Wint Wealth, Altifi, Alteria Capital, and Anicut Capital.

In October, it raised Rs 1,123 crore in debt funding in the first half of FY25 to expand its operations and advance its vision of sustainable growth and rural development.

Samunnati onboarded 14 new lenders, including Kotak Mahindra Bank, Indian Overseas Bank, ESAF, Karur Vysya Bank, and impact lenders Blue Earth and Enabling Qapital, with loans totalling Rs 480 crore. Samunnati also used online bond platforms to attract over 5,500 investors.