The global coronavirus crisis is a social issue that threatens the well-being of the world’s population, especially the elderly and those with underlying health conditions. In addition, millions of people around the world are suffering from the downturn brought on by the impact of the epidemic on economies and businesses.
Social Bonds – Illustrative use-of-proceeds case studies: Coronavirus aims to provide an illustrative reference by which issuers and bond market participants can evaluate the financing objectives of a Social or Sustainability Bond in light of the current coronavirus epidemic and its global socio-economic impact. Social bonds finance projects that directly aim to address or mitigate a specific social issue and/or seek to achieve positive social outcomes. As the pandemic is causing far-reaching economic disruption in emerging markets and developing countries, the social bond market is one avenue through which the public and private sectors could access the critical capital required to meet healthcare needs, restore economic stability and preserve jobs.
This guide is in response to the efforts being made within the capital markets to mitigate the negative health and socio-economic impacts of the coronavirus. The case studies included in this document highlight how issuers from various industries may use social bonds to raise financing which will go towards addressing social issues that have emerged as a consequence of the COVID-19 pandemic.