The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
ESG

Will social bonds survive Covid?

The social bond market has boomed as public-sector borrowers raise funding to mitigate the pandemic. Now they need to become long-term options for both banks and corporates.

money-covid-960.jpg

On October 20, the European Union crowned a triumphant year for the social bond market when it raised €17 billion of financing for its Covid-19 employment mitigation programme.

That took total issuance this year to roughly $80 billion, nearly three times the amount sold in 2019.

Social bonds have been around for a while. French industrial group Air Liquide issued a ‘socially responsible bond’ in 2012, and principles for issuance were published by the International Capital Market Association (Icma) two years later.

Yet, until this year the new instrument had struggled to gain traction, overshadowed by the rapid growth of the green bond market. In 2019, social bonds accounted for just 8.5% of total sustainable debt issuance, according to the Climate Bonds Initiative.

SusanBarron_400.jpg
Susan Barron, Barclays

That all changed with the arrival of Covid.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree