Social Bond

A Social Bond is a fixed-income instrument where the proceeds are exclusively applied to finance or re-finance new and existing projects that directly address or mitigate a specific social issue and/or seek to achieve positive social outcomes, such as affordable housing, employment generation, or food security. These bonds are governed by the International Capital Market Association's (ICMA) Social Bond Principles (SBP), which mandate transparency in the use of funds, project selection, and impact reporting to ensure accountability to investors.