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CEB forms partnership with the Japanese Government Pension Investment Fund

13 December 2019

PARIS – The Council of Europe Development Bank (CEB) and Japan’s Government Pension Investment Fund (GPIF) have formed a partnership to promote and develop sustainable capital markets through investments in the CEB’s Social Inclusion Bonds.

“We are privileged to partner with GPIF. Their leadership on ESG-focused investments lends important support to the type of high-social-impact projects that the CEB finances throughout Europe,” said Jacques Mirante-Péré, CEB Chief Financial Officer.

“The GPIF requires all asset managers to integrate ESG into their investment analysis and decision-making. We regard the purchase of Green, Social and Sustainability Bonds as one of the direct methods of ESG integration in the fixed income investment. The CEB’s social mandate and action as the oldest European multilateral development bank has played a key role in the advancement of social integration in European societies by placing emphasis on socially oriented issues. The GPIF values the CEB’s expertise in this area and looks forward to working together on this initiative,” said GPIF Executive Managing Director and Chief Investment Officer Hiro Mizuno.

The CEB’s Social Inclusion Bond Framework is in alignment with the International Capital Market Association’s (ICMA) Social Bond Principles. The CEB launched its inaugural Social Inclusion Bond in April 2017 and, to date, the Bank has issued a total of €1.5 billion of such issuance. The proceeds of the bonds finance projects with a high social added value in the following sectors: social housing, education, and job creation and preservation in micro, small and medium-sized enterprises, throughout Europe.

Details on the impact of the first and second Social Inclusion Bonds can be found here and here.

The Government Pension Investment Fund (GPIF) is the largest public pension fund in the world in terms of assets under management. More details can be found here.

Set up in 1956, the CEB (Council of Europe Development Bank) has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (AA+ with Fitch Ratings, outlook positive, AAA with Standard & Poor's, outlook stable and Aa1 with Moody's, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.