News
CEB issues first AUD 40 million 15-year Kangaroo Social Inclusion Bond, also its first Social Inclusion Bond private placement
28 September 2023
Paris – On 27 September the Council of Europe Development Bank (CEB) successfully placed its first Australian dollar-denominated Social Inclusion Bond (SIB), which is also the CEB’s inaugural SIB private placement issuance. Private placements are sold to pre-selected investors to meet their specific needs.
The new SIB is part of the CEB’s strategy of providing further growth to the social bond market by expanding into new currencies. The private placement was issued in AUD and it is now the fifth SIB currency after issuance in EUR since 2017, USD since 2020 and a first SEK and CAD SIB earlier this year.
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, education, job creation and preservation in micro, small and medium-sized enterprises, and healthcare.
Anne Flori, Funding Manager at the CEB, commented: “We are pleased with the outcome of the issuance. With this private placement we were able to meet the needs of the investor in terms of the currency and maturity. We rarely fund ourselves with longer-dated issuances, so this SIB fits very well into our funding program from a debt profile perspective.”
As the only multilateral development bank with an exclusively social mandate, the CEB is committed to working towards further development of the social bond market to support social investments across Europe. The Bank has been a pioneer in this market ever since the issuance of its first SIB in April 2017.
The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.