News
CEB publishes 2021 Social Inclusion Bond Report and updated framework
29 March 2022
PARIS – The Council of Europe Development Bank (CEB) today published an impact report on its two Social Inclusion Bonds from 2021, together with an updated Social Inclusion Bond Framework for future issuance. The impact report provides detailed information on the allocation of the proceeds and social impact of the projects financed.
“As the social development bank for Europe, the CEB has always focused on the social impact of its lending activity, leading by example,” said CEB Governor Carlo Monticelli. “The 2021 Social Inclusion Bond Report and the updated Social Inclusion Bond Framework highlight the Bank’s capacity to select worthy and impactful projects.”
Thanks to its exclusively social mandate, the CEB is ideally positioned to issue social bonds and allocate the proceeds to projects with high social value.
The proceeds of its sixth and seventh social inclusion bonds issued in April and June 2021, namely the €500 million issued with a seven-year maturity and $500 million with a three-year maturity, financed projects in the following key sectors of activity for the Bank:
- Social housing for low-income persons
- Education and vocational training
- Health
- Supporting MSMEs for the creation and preservation of viable jobs.
Key figures:
- To respond to acute needs in several European countries, 3,957 social and affordable dwellings were constructed or renovated.
- In the field of education and vocational training, 827,719 students benefited from new or modernised facilities.
- In the health sector, 555,195 people received medical care.
- Thanks to financing to MSMEs, 1,869 new jobs were created and 123,885 preserved in eight countries.
Overall, twenty-one projects across 19 countries benefitted from the proceeds of the two social bonds in the areas of action closely aligned with the CEB’s strategic priorities, as well as with several Sustainable Development Goals (SDGs).
As a leading social bond issuer, the CEB also updated its Social Inclusion Bond Framework to align with the latest market standards and practices.
The updated framework clarifies the target population for each category, while the Use of Proceeds categories remain unchanged. The CEB also updated its approach to the management of proceeds to a portfolio approach to reflect the dynamic nature of its loan portfolio.
Sustainalytics provided the Second Party Opinion on the framework and confirmed its alignment with the Social Bond Principles 2021.
The CEB is committed to transparent reporting on the allocation and impact of eligible social loans that are financed by its social inclusion bonds. In 2023 it will start reporting on the entire portfolio of social bonds and eligible social loans (per ICMA Social Bond Principles categories), and show the proportion of financed and refinanced loans.
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 (Aa1 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.
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