Labelled social bonds finance or refinance projects intended to offer target populations opportunities for social and economic betterment and improved wellness. Eligible use-of-proceeds can span multiple sectors, so the social bond market has a wider group of potential issuers than the green bond market. Labelled social bonds have experienced a meteoric rise in 2020 as Covid-19 created large-scale need to fund public-health projects and economic fallout quickly.
Key learning objectives:
What are labelled social bonds?
Which areas have social bonds been issued to finance?
Who issues social bonds?
How do social bonds differ from conventional bonds?
How big is the social bond market?
What are some of the challenges to the social bond market?