Social Bond

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A form of activity-based sustainable finance in which the financing is linked to business activities with social benefits. Although there are no definitive criteria for what constitutes a social benefit, Social Bond projects typically aim to promote infrastructure development, access to essential services, employment generation, food security and socioeconomic advancement or empowerment to advance the prospects of target populations. Social Bond is also known as social impact bond.

See also: Green Bond; Sustainability Bond.

Links

International Capital Market Association Social Bond Principles (SBP)
International Finance Corporation Social Bonds