CEB issues € 500 million social inclusion bond
5 April 2019
PARIS – The Council of Europe Development Bank (CEB) just concluded a €500-million social inclusion bond with a maturity of 7 years. With this new issuance, the CEB is acting in accordance with its social mandate and capitalising on its strong track-record of promoting social investments across Europe.
The CEB launched on Wednesday its third social inclusion bond issue of €500 million with a seven-year maturity, gathering investor interest of over €730 million. In line with the Social Inclusion Bond Framework, the proceeds of the bond will 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.
The issue follows the CEB’s publication last week of an impact report on its second social inclusion bond issued last year, providing full information on how the proceeds of that bond were used. You can find the full report here.
With regard to this week’s issuance Governor Wenzel said: “We are pleased that the CEB’s third social inclusion bond has attracted strong interest from investors, similarly to our previous two social inclusion bonds. The proceeds are earmarked for projects with a particularly high social value in sectors that are vital for social development. As a development bank with a social focus, we carefully screen all the projects that we finance for their social added value to ensure that they provide optimal support to the social policies of our member countries.”
One of the aims of the social inclusion bond is to broaden the investor base, in line with the CEB’s funding strategy. The issuance attracted a wide range of socially responsible investors, with asset managers and banks showing a particularly strong interest, and demand in Europe coming primarily from the Benelux, the UK and Italy.
Acting as joint book runners on this transaction were Crédit Agricole CIB, DZ Bank, Bank of America Merrill Lynch, and ING.Technical details on the transaction are available 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 (AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, 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.