MuniFin has launched a new social finance product for its customers and published the first Social Bonds Framework by any Nordic financial institution. Under the framework eligible projects promote sense of community, well-being and vitality.
Since its founding, MuniFin has had a major role in financing municipalities and social housing sector, both of which are integral components of the Finnish welfare society. Due to this very nature, MuniFin has always been financing projects that have a great social impact. With the introduction of the new social finance product, the aim is to find projects that have the greatest positive social impact and promote well-being in the Finnish society.
Similarly to the green finance product, social finance projects are selected using MuniFin’s social bonds framework and finally approved by the Social Evaluation team. This team consists of two or more members from MuniFin’s customers or other public sector entities or organizations. One member of the team is from MuniFin’s lending department. Every project is analysed independently.
MuniFin’s Social Bond Project Categories
- Social housing projects
- Welfare projects
- Education projects
The majority of the eligible projects are long-term projects with maturities varying from 5 to 41 years.
The Second Opinion for MuniFin’s Social Bonds Framework has been provided by ISS ESG.
Social finance is funded by Social Bonds
MuniFin plans to fund the social finance portfolio by issuing social bonds in the future. There are not yet any social bonds outstanding.
In efforts to promote information sharing of the financed projects and their impacts, MuniFin is committed to publish an impact report annually.