Social Bonds

Since 2021, Kommuninvest has offered Social Sustainability Loans to municipalities, regions and municipal companies that wish to use financing as a tool in their efforts to achieve social objectives. To finance the social loan portfolio, Kommuninvest issues social bonds. These bonds promote preventive municipal initiatives and efforts to reduce social exclusion in socially vulnerable areas.

Social Sustainability Loans are granted for investments within three categories: housing and residential environments; safety, security and accessibility; and health, education, sports and culture. The loans are intended to finance investments that, individually or in combination with targeted social interventions, can contribute to achieving social objectives.

Loan applications are reviewed by the Committee for Social Sustainability, comprising experts with broad and qualified competence in the social field, covering research, innovation and operational development work.

Kommuninvest’s Social Bond Framework sets out principles and requirements for Social Sustainability Loans. A second-party opinion has been obtained from Sustainalytics. Danske Bank and SEB assisted Kommuninvest in developing the framework.

The principle for issuing social bonds is the same as for Kommuninvest’s green financing programme. Funds raised through social bonds finance disbursed Social Sustainability Loans for eligible investment projects.