Social bonds

MuniFin has offered social finance for its customers’ projects that produce widespread social benefits and serve the needs of their users in an exemplary way since 2020. MuniFin’s social finance projects promote equality, communality, safety, welfare, or regional 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 social finance, the aim is to find projects that have the greatest positive social impact and promote well-being in the Finnish society.

Similarly to green finance, social finance projects are selected using MuniFin’s Social Bonds Framework and finally approved by the Social Evaluation Team. This three-person team consists of social experts that includes two independent experts and one member from MuniFin’s customer solutions division. Every project is analysed independently.

All social finance projects are financed and located in Finland. To make socially sound investments more attractive to our customers, we grant approved social finance projects a margin discount of 2 basis points.

The project categories of MuniFin’s Social Bonds Framework

  • Social housing projects
  • Welfare projects
    • Healthcare
    • Sports
    • Culture
  • Education projects

The Second Opinion for MuniFin’s Social Bonds Framework has been provided by ISS ESG.

Social finance is funded by social bonds

MuniFin issued its inaugural social bond in September 2020. Read more about social bonds in the Social Impact Report.

MuniFin aims to issue one social bond per year.

To provide investors with more detailed information about social finance projects and their impacts, MuniFin publishes a Social Impact Report annually.

More information