Social Bond Cassa depositi e prestiti: social impact investing | CDP

Social Bond 2017

The first Social Bond under the "Debt Issuance Programme" (DIP) dedicated to support Italian SMEs located in economically deprived areas or hit by earthquakes

Sustainability Bond 17 - hero

In November 2017 CDP successfully closed its inaugural € 500 million Social Bond, issued under the Debt Issuance Program (DIP). This transaction represents the first ever Social Bond issued in Italy, as well as the first issuance in Europe dedicated to Small and Medium Enterprises based in areas affected by natural disasters.

The issue is consistent with the CDP Social Bond Framework, in line with the Social Bond Principles released by the International Capital Market Association in June 2017, and inspired by the UN Sustainable Development Goals. The transaction is part of a broader strategy of CDP’s approach to sustainability, diversification of investor base and stabilization of funding sources.

Supporting Italian SMEs for the growth of territories
The proceeds of CDP inaugural Social Bond have been allocated to finance/refinance loans exclusively devoted to new investments and working capital to Small and Medium Enterprises based in economically deprived areas. The enterprises – all with less than 250 employees – are located in Italian regions with a level of GDP lower than the national average or in areas which have been impacted by natural disasters; as defined by CDP Social Bond Framework, SMEs operating in any business sector listed in the Exclusionary Criteria are not included.

With this inaugural transaction, CDP aims to promote the achievement of the United Nations Sustainable Development Goals (UN SDGs), particularly SDG 8 which aims at “promoting of sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”.

 

Bond Characteristics
The transaction followed a pan-European roadshow touching Amsterdam, London, Paris, and Milan, organized to introduce CDP’s newly-established Social Bond Framework and provide a credit update.

The issue, for institutional investors, has a nominal value of € 500 million, at fixed rate, senior unsecured, with a tenor of 5 years (maturity date November 2022), an annual coupon of 0.75% and a re-offer price of 99.839%.

On the transaction, CDP obtained a Second Party Opinion provided by Vigeo Eiris.

 

Social Bond Impact
CDP presents the Report on the impact generated by the first "Social" bond issue. Over 17,500 jobs generated and preserved.