The International Finance Corporation (IFC) launched a Social Bonds Coronavirus Illustrative Use of proceeds through case studies.
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 by IFC – a sister organization of the World Bank and member of the World Bank Group – 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 that it describe 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.