CEB’s new USD 1 billion social inclusion bond to benefit Ukraine refugees

9 June 2022

Transaction Highlights:

  • This transaction is the 9th Social Inclusion Bond (SIB) issued by CEB, and their third in USD Global format, with a total funding volume in SIB format now totaling close to EUR 6 billion.
  • The Use of Proceeds from this SIB transaction will be primarily directed to supporting Ukrainian refugees.
  • This is the largest USD SIB transaction at USD 1 billion and represents the largest orderbook for a CEB USD transaction, with books closing in excess of USD 2.3 billion.
  • Over 75% of the transaction was placed with Socially Responsible Investment (SRI) investors.

PARIS – The Council of Europe Development Bank (CEB) has issued a new USD 1 billion three-year global Social Inclusion Bond (SIB) whose proceeds will be primarily used to support Ukrainian refugees hosted by CEB member countries.

This transaction follows a € 1 billion seven-year social inclusion bond that the CEB issued in early April 2022 to bolster its response to the social crisis unfolding due to the war in Ukraine and to help its member states assist millions of refugees seeking safety. 

“The new social inclusion bond will enable us to expand assistance to our member states that are hosting millions of displaced persons from Ukraine,” said CEB Governor Carlo Monticelli. “Its proceeds will be used to address the most urgent needs of refugees and their host communities.”

In line with CEB’s updated Social Inclusion Bond Framework and its commitment to provide flexible, fast-disbursing loans to address the significant financial needs of CEB member countries that are receiving large inflows of Ukrainian refugees, the proceeds raised through this social inclusion bond will be used to fund eligible social loans in one or several sectors of action:

  • Social housing for low-income persons;
  • Education and vocational training;
  • Health and social care;
  • Support to MSMEs for the creation and preservation of jobs.  

Acting on its mandate to promote social cohesion and integration in Europe, and to aid refugees, migrants and displaced persons, the CEB was the first multilateral development bank to disburse grants to provide immediate assistance to refugees from Ukraine.

Thanks to past experience and the track record of its Migrant and Refugee Fund (MRF), the Bank was able to promptly respond to the urgent needs of Ukrainian refugees on the ground. Just recently it has approved €980 million in new loans to support CEB member countries in dealing with the humanitarian emergency caused by the war in Ukraine.

The CEB has been issuing social inclusion bonds since 2017 and this transaction represents the ninth such benchmark from the borrower and the third such transaction to be issued in USD. 

Full technical details of the social inclusion bond

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.