News

CEB issues USD 1 billion 3-year Social Inclusion Bond Benchmark

19 May 2023

PARIS - The Council of Europe Development Bank (CEB) has issued on 17 May a new $1 billion Social Inclusion Bond (SIB) to continue to support social investments across Europe. CEB is one of the very few supranational institutions that issue social bonds in USD, thereby supporting the USD social bond investor base, at an attractive funding cost for its social projects. This is the CEB’s second largest USD SIB transaction to date.  

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 provided very strong support to this transaction with over 74% of the issue allocated to such investor class.

Governor Monticelli said: “This new CEB Social Inclusion Bond further confirms our commitment to the social bond market at large as well as our full-fledged support to the USD social investor base.”

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.

Investor distribution  

By geography

Americas: 37%
Asia: 20%
Germany/Austria/Switzerland: 13%
Middle East/Africa: 11%
Other Europe: 10%
UK/Ireland: 6%
Other: 3%

By investor type

Central Banks: 47%
Banks: 37%
Asset Managers: 29%
Hedge Funds: 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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