Social Bond aimed at financing Italian Small Medium Enterprises (SME) based in economical deprived areas
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”.
Tenor 5 years
Nominal amount € 500 mln
Annual coupon 0.75%
CDP Social Bond Presentation
Vigeo Eiris Second Party Opinion
CDP Social Bond Framework
CDP Inaugural Social Bond Deal Review
CDP Social Bond Report
Methodology used to estimate the employment impact of CDP Social Bond
Vigeo Eiris Opinion on CDP Social Bond Report