CEB publishes report on first Social Inclusion Bond
5 March 2018
PARIS – The Council of Europe Development Bank (CEB) today published on its website a report on its first Social Inclusion Bond, which was issued in April 2017. The report includes background information on the issuance and provides details on the allocation of the proceeds and social impact of the projects financed.
The proceeds of the CEB’s inaugural Social Inclusion Bond issuance, which was of € 500 million with a seven-year maturity, were allocated to high social-added-value projects in three key sectors: 1) support to micro, small and medium-sized enterprises (MSMEs) in order to strengthen job creation and preservation; 2) social housing for vulnerable population groups; and 3) education and vocational training. These are priority sectors of operation for the CEB and areas in which European countries have increased needs in the current economic circumstances.
Thanks to the provision of financing to over 12 000 MSMEs, almost 113 000 jobs have been preserved and 1 228 new jobs have been created. In social housing, close to 2 300 homes have been made available to low-income persons through construction or renovation projects. In education and vocational training, more than 57 000 students in 212 institutions have benefited from the funds.Commenting on the report, CEB Governor Rolf Wenzel said: “When we issued our first Social Inclusion Bond last year, we made a commitment to report on the allocation of the proceeds during the calendar year that followed the issuance. We are pleased both with the strong investor interest in our Social Inclusion Bond and with the high social impact of the projects financed with the proceeds, on which you can read more in the report published today. This is precisely what the CEB’s work as a social development bank is about. Preparations for the issuance of our second Social Inclusion Bond are already underway.”
CEB 2017 Social Inclusion Bond ReportDownload
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.