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CEB issues second COVID-19 Social Inclusion Bond

3 June 2020

PARIS – Today the Council of Europe Development Bank (CEB) issued a USD 500 million 3-year Global COVID-19 Response Social Inclusion Bond. In response to the COVID-19 crisis, the CEB was able to leverage off its extended Social Inclusion Bond framework for the second time since April in order to support its member countries.

This new benchmark attracted strong interest from investors, with final books three times the issue size. The global USD benchmark issuance follows the CEB’s successful EUR 1 billion 7-year COVID-19 Social Inclusion Bond launched on 2nd April.

In line with the CEB's commitment to support member countries affected by COVID-19, the Bank will allocate the proceeds to the financing or refinancing, in part or in full, of new or existing loans in line with the Social Inclusion Bond framework. These loans will cover support to MSMEs for the creation and preservation of viable jobs and expenditures related to the health sector.

As with previous issuances under the Social Inclusion Bond framework, the Bank will publish in a year’s time an impact report on the proceeds of the bond. The CEB has already substantially increased its lending activity to support its member countries, hit particularly hard by the COVID-19 pandemic.  

CEB Governor Rolf Wenzel said: “Following the success of our COVID-19 Response Social Inclusion Bond, issued just over two months ago, this new issuance demonstrates our continued commitment to supporting crucial sectors such as employment and health during this unprecedented crisis and in the recovery period to follow, in line with our social mandate.”   

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 (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.