Capstan advised GEWOBAG on their inaugural €500m Social Bond issue lead-managed by JPMorgan, ING and UniCredit.
Social Bonds are basically any type of fixed income bond instrument where issuance proceeds will be exclusively applied to finance or re-finance new and/or existing eligible social projects. They are aligned with the four core components of the Social Bond Principles (SBP) defined by the International Capital Markets Association (ICMA). SBP-linked debt finance should provide transparent social credentials alongside the investment opportunity.
ESG principles, on the other hand, are less defined by comparison, however social housing undoubtedly delivers a significant score. Social housing generally provides enhanced quality of life for the less privileged groups of the population and thus delivers a big improvement for many social communities. Combined with the solid reputation of established pure-play social housing companies such as GEWOBAG, Social Bonds could well become one of the primary investment choices for ESG investors.