CEB issues second social inclusion bond
20 March 2018
PARIS – The Council of Europe Development Bank (CEB) issued today a €500-million seven-year social inclusion bond to finance social development in Europe. 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 its second social inclusion bond issue of €500 million with a seven-year maturity, gathering investor interest of over €700 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.
“This latest issuance demonstrates the CEB’s leading role in the social bond market. The CEB’s explicitly social mandate aligns it naturally with this segment of the capital market and ideally positions the institution to issue social bonds,” CEB Governor Rolf Wenzel said.
“We want to create a momentum in this segment and try to bring the market to our objective, which is to enhance social cohesion in Europe,” the Governor added.
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 Germany and France.
The issuance followed a series of investor meetings across Europe to present the CEB’s Social Inclusion Bond Framework. Acting as joint book runners on this landmark transaction were Crédit Agricole CIB, DZ Bank, Goldman Sachs International, and Rabobank.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 (Aa1 with Moody's, outlook stable, AA+ with Standard & Poor's, outlook positive 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.