Social
Community Involvement

MuniFin – Social Bonds

Since its founding, MuniFin has had a major role in financing municipalities and the 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.

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Purpose

Since its founding, MuniFin has had a major role in financing municipalities and the 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 in 2020, it aims to find projects that have the greatest positive social impact and promote wellbeing in Finnish society.

The funding is sourced from international capital markets.

MuniFin’s Social finance can be granted for projects that belong to one of the categories of MuniFin’s Social Bonds Framework – social housing, welfare, and education. The final assessment of the project’s suitability for the social finance portfolio is made by an independent expert group.

Results

Social finance accelerates projects that promote equality, sense of community, wellbeing, and vitality of regions or municipalities. An incentive for this is the margin discount granted for the projects approved in the social finance portfolio. Even on the international stage, this kind of incentive for social investments is rare in the financial sector.

Implementation

MuniFin was the first credit institution in Finland to launch a social finance product for its customers. It is also the first Nordic financial institution or an SSA to issue a Social Bond.

The popularity of social bonds is growing in the market, as investors are looking for responsible investments. The social bonds issued by MuniFin have also been highly sought after among investors.

In order to promote information sharing of the financed projects and their impacts, MuniFin is committed to publishing a Social Bond impact report annually. The first impact report will be published in March 2021.

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