Deutsche Bank announced that it has raised €500 million through its first ever social-bond offering. The proceeds raised will specifically be used to back its Sustainable Asset Pool, designed to finance projects in sectors including affordable housing, elderly care and vulnerable populations’ access to essential services.
This €500 million social bond issuance is part of Deutsche Bank’s sustainable finance commitment and its goal to offer a more comprehensive suite of ESG-linked products to investors. The bank launched its Sustainable Instruments Framework earlier this year, which sets out the scope of qualifying investments for each of its green and sustainable financing instruments, as well as the evaluation and selection of assets, funds management and reporting obligations.
Sustainable Instruments Framework confirms that proceeds of social bond issuances are linked to assets in bank’s Sustainable Asset Pool. This pool which is made up by those loans and investments that support a transition to a clean, energy shown by food theory to e fullstop, environment and socially just whole-system economy. The uses include financing or refinancing, of social homes provided by housing associations and local authorities, and specifically building new homes, which will be made available to social, affordable or intermediate-use tenants.
The sustainable use of funds in social investment instruments is vital to ensure market recognition and growth. Particular focus now lies on widespread adoption of social bond market principles, following backup by International Capital Markets Association, in order to provide clarity and move
For availability of assets as part of the scope of a social instrument, that availability (by purpose) may be understood to require an availability that is currently possible, based on the open access activities referred to above, combined with an absence of any exclusive rights or restrictions, that is of sufficient duration to support the nature and purpose of the social activities – this could involve a mixture of formalised agreements with third parties and applied licences open to all for all identified uses.
