Social Bond CDP: €500 million to support Italian SMEs

Launched the first social bond by an Italian issuer, closed with a demand five times higher than the offer, 70% from foreign investors

Rome November, 15 2017

CDP has successfully placed its first social bond in the international capital market. The transaction has a nominal value of € 500 million and it is dedicated to SMEs not involved in controversial business activities and located in economically deprived areas or in areas hit by natural disasters.

A social bond is an innovative financial instrument that operating with capital raised on the market for projects with a clear positive social impact. CDP is the first Italian operator to close an issue of this kind on the international market and the first in Europe to capitalize on areas affected by natural disasters.

CDP’s Social Bond is inspired by the United Nations Sustainable Development Goal (UN SDG) Number 8: “Decent Work and Economic Growth” and is in line with the International Capital Market Association (ICMA) Social Bond Principles 2017, focusing on: “employment generation including through the potential effect of SME financing and microfinance”.

The transaction took place after a pan-European roadshow with stops in Amsterdam, London, Paris and Milan. More than 150 investors signed on for the bond. At €2.25 billion euro, demand was about five times greater than the offer, more than 70% from foreign investors, with a significant presence of socially responsible investors. The issue was made with the support of Barclays, Crédit Agricole CIB, Citi, HSBC, Société Générale CIB and UniCredit, who acted as Joint Lead Manager and Joint Bookrunner.