The social development bank for Europe
CEB issues first social inclusion bond
3 April 2017
PARIS – The Council of Europe Development Bank (CEB) successfully completed today its first issuance of a social inclusion bond.
The CEB launched its inaugural social inclusion bond issue of € 500 million with a seven-year maturity, gathering investor interest of over € 1 billion. Acting as joint book runners on this landmark transaction were Crédit Agricole CIB, DZ Bank, Goldman Sachs International and Rabobank.
The issuance followed a series of investor meetings across Europe to introduce the CEB’s Social Inclusion Bond Framework, which benefited from a positive second opinion from the specialised environmental, social and governance (ESG) rating agency Sustainalytics.
In line with the Social Inclusion Bond Framework, the proceeds are reserved for financing eligible loans to support social housing, education and vocational training, and job creation and preservation in micro, small and medium-sized enterprises.
Commenting on this development, CEB Governor Rolf Wenzel said: “The CEB is the oldest development bank in Europe with an exclusively social mandate. Promoting social inclusion lies at the heart of the Bank’s activities and has done so for over 60 years. I am delighted, therefore, with the issuance of this first social inclusion bond today, which fosters the growth of the social bond market.”
“This landmark issuance is a proud moment for the CEB,” the Governor continued, “and a major step towards promoting social cohesion in Europe within the framework of the CEB’s new Development Plan 2017-2019.”
CEB issues inaugural EUR 500mn 7-year Social Inclusion Bond Benchmark
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 (Aa1 with Moody's, outlook stable, AA+ with Standard & Poor's, outlook stable and AA+ with Fitch 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.