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Banks boost investment in social and stability projects

Banks boost investment in social and stability projects

(22 July 2015 – France) A trio of banks, including Credit Agricole CIB, HSBC and Rabobank announced a new initiative to boost investment in social and sustainability projects by publishing a Social Bond and Sustainability Bond Appendix (SSBA) designed as a proposed appendix to the successful Green Bonds Principles (GBP) launched in 2014.

This initiative is intended to help issuers and socially-engaged investors with voluntary guidelines for the development and issuance of Social and Sustainability Bonds, encouraging transparency, disclosure and integrity in the development of these new markets.

This SSBA will be submitted to the Executive Committee of the GBP Executive Committee for its consideration.

Crédit Agricole CIB, HSBC and Rabobank are leading underwriters in the Green, Social and Sustainability Bond markets and have leveraged their knowledge and experience to develop this SSBA.

The three banks have published this text as a basis for discussion with the GBP Executive Committee and for the early information of the market in anticipation of a future consultation process.

The SSBA guidelines define Social and Sustainability Bonds with the objective of supplementing and complementing the Green Bond Principles to accommodate the different purposes of these new market segments.

They focus on the use of proceeds and their allocation to social and sustainability projects as well as on the appropriate reporting of the proceeds of a Social or Sustainability Bond.

Similar to the Green Bond Principles, they build on the recent first-to-market issuances of Social and Sustainability Bonds by various issuers and provide a framework for future issuers to direct funding to social and sustainable projects.

Crédit Agricole CIB “Issuers of Social Bonds and Sustainability Bonds have already started to link their approach to the Green Bond Principles.

Our proposed Social Bond and Sustainability Bond Appendix to the GBP will enable a more rigorous definition of such transactions and should therefore further boost this market" said Tanguy Claquin, Global head of Sustainable Banking, Crédit Agricole CIB.

HSBC "Having been involved at the early stages of the Social and Sustainability Bond market, we have seen the need for a clear and transparent framework for Social and Sustainability Bond issuance.

“The proposed Social Bond and Sustainability Bond Appendix to the GBP will facilitate more financing focused on strong social benefits.” said Ulrik Ross, Global head of Public Sector and Sustainable Finance, HSBC Bank Plc.

Head Sustainability Rabobank Markets: “Well balanced social and environmental development is an important requirement for economic growth.

“The proposed Social Bond and Sustainability Bond Appendix to the GBP will help issuers and investors to make their contribution to the various social and environmental UN Sustainable Development Goals more transparent and tangible.

“Rabobank is proud to be a frontrunner in the social and green bond markets.”

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