Social
Health and Well-being

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.

Amount of social finance (EUR million)
589
Total impact 589 See all »
Amount of social finance (EUR million)
589
Total impact 589 See all »
Share the Planet Act and help it spread
Anyone with a social media account can help boost visibility of this action by sharing on Facebook, Twitter, or LinkedIn.
Challenge an organization
Challenge an organization to join this action
0
Organizations challenged
Impact
Excitement
Replicability
Project Director, Sustainable Everyday Life at Sitra
Markus Terho
Review

This Planet Act demonstrates how the public sector can join forces with the private sector and drive needed societal changes by introducing new ways of financing positive social change and linking financial returns with sustainability impact. There is a large opportunity to scale the use of these types of instruments, but only public organizations are able to credibly issue such social bonds and their use requires specific competencies and expertise.

About Markus
A corporate responsibility veteran, with over two decades in the industry. He has held several notable positions, among them, he has served as the global sustainability chief at Nokia. There he has managed global corporate responsibility activities, environmental and social responsibility, social investment portfolios as well as disaster relief and charity donations.
Impact
Excitement
Replicability

After being the first green bond issuer in Finland in 2016 it was a natural step for us to expand our sustainable product offering by introducing social bonds to our investors. With social finance, we aim to encourage our customers in the municipal and social housing sector to invest in projects that address some key social challenges such as inequality and social exclusion.

Antti Kontio, Head of Funding at Sustainability, MuniFin

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.

The People's Voice

No comments yet

Other Planet Acts in Health and Well-being

Your current shadow instance is ""Staging"". Exit