CEB publishes 2022 Social Inclusion Bond Report

PARIS (29 March) - The Council of Europe Development Bank (CEB) today published its Social Inclusion Bonds (SIB) report under the Bank's new portfolio approach for the management of proceeds following the update of the SIB Framework last year.

The "Use of Proceeds" categories of the Framework remain unchanged and comprise the following four key sectors of activity for the Bank:

• housing for low-income persons;
• health and social care;
• education and vocational training;
• support to micro-, small- and medium-sized enterprises (MSMEs) for the creation and preservation of viable jobs.

Key figures of the eligible social loans' portfolio as at 31 December 2022:

• 154,050 dwellings constructed or renovated
• 4,147,738 students benefitted from new or better educational facilities
• 1,180 healthcare establishments constructed or modernised
• 1,560,981 jobs created

The CEB was also the first issuer to respond to the Ukraine refugee crisis with targeted social bonds: €1 billion seven-year SIB in April followed by $1 billion three-year one in June. In September, the Bank of Lithuania invested €100 million in an increase ("tap") of the former SIB.

"Overlapping crises that shook Europe and the world last year ramped up the vital importance of the CEB's mission, namely promoting social cohesion by financing inclusive social investment projects" Governor Carlo Monticelli said. "Through the issuance of SIBs, the CEB has continued to adapt flexibly and proactively to the new financing needs stemming from the social challenges faced by our member states."

In recognition of its pioneering work in the social bonds sector, the CEB received the "2023 Best ESG Issuer" Award from Collaborative Market Data Network (CMDportal). Additionally, the Bank's €1 billion 7-year Social Inclusion Bond issued in April 2022 earned 'Top Deal' acknowledgement from CMDportal.

Since 2017, the CEB has issued nine SIBs for a total volume of almost €6bn. A record 34% of CEB's funding requirement in 2022 was covered by SIB issuance.

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