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CEB issues EUR 1 billion 7-year Social Inclusion Bond Benchmark

5 April 2023

PARIS - The Council of Europe Development Bank (CEB) has issued a €1 billion SIB to continue to support social investments across Europe. This new issuance was met with strong support from socially responsible investors and completes the CEB’s EUR SIB curve as the 7th, 7-year EUR-denominated SIB since CEB started to issue its pioneering SIBs in 2017.

As the only multilateral development bank with an exclusively social mandate, the CEB has always been focused on the social impact of its lending activity. In line with the CEB’s SIB Framework, the proceeds of this new bond will be used for eligible loans in one or several of the following categories::

  • Social housing for low-income persons;
  • Education and vocational training;
  • Health and social care;
  • Support to MSMEs for the creation and preservation of jobs.

Socially responsible investors were well represented in the orderbook, providing further investor diversification to the Bank. Around 60% of the issue was allocated to SRI investors.

As with previous issuances under the Social Inclusion Bond framework, the Bank is committed to transparent reporting on the allocation and impact of eligible social loans that are financed by its SIB. In March 2023, the CEB published its latest SIB Report, this time under the Bank’s new portfolio approach for the management of proceeds following the update of the SIB Framework last year.

Importantly, the CEB is also preparing to welcome Ukraine as a new member in the coming months. This will enable the Bank to play its full part in the international effort to safeguard the future of the country and its people, particularly by providing support in the housing and healthcare, sectors where the Bank has extensive expertise.

“The proceeds of this new SIB will allow the Bank to continue financing our member states’ much-needed investment in social sectors as per the Bank’s mandate,” said CEB Governor Carlo Monticelli.”We are particularly pleased that in line with our strategic, continuous commitment to the social bond market we have now successfully completed our SIB curve”

Investor distribution  

By geography

France: 23%
Germany: 12%
Benelux: 11%
Nordics: 9%
Italy/Portugal/Spain: 9%
United Kingdom: 8%
Middle East/Africa: 8%
Asia: 7%
Swiss/Austria: 7%
Americas: 4%
Other Europe: 2%

By investor type

Banks: 45%
Asset Managers: 29%
Central Banks/OI: 15%
Insurance/Pension Funds: 8%
Others: 3%

For full technical details of the transaction, please click here

Set up in 1956, the CEB (Council of Europe Development Bank) has 42 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 Moody's, outlook stable, AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, outlook positive and AAA* with Scope Ratings, 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.
*unsolicited

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