Page 56 - Banking Finance May 2024

ARTICLE

UNLOCKING SOCIAL

IMPACT: THE RISE

OF SOCIAL BONDS

IN SUSTAINABLE

INVESTING

I n the context of financial markets, social bonds refer Government measured outcomes Delivery Financial returns
Investor
agency
to a specific type of bond issued by governments,
Payment base on
municipalities, or organizations to raise capital for
dependent on
projects with social or environmental benefits. These
bonds are also known as "green bonds" or "sustainability Service measured outcomes
provider
bonds" depending on the focus of the projects they finance. Improved outcomes
for target cohort
and socity
Social bonds are another new category of bonds making
waves in the investment space. Just like green bonds, social Target cohort
bonds are part of the broader sustainable bond market.
They aim to fund projects with a direct positive social impact,
such as affordable housing, education, healthcare, socio- The Pimpri Chinchwad Municipal Corporation (PCMC) in
economic advancement, and employment generation. Maharashtra's Pune and United Nations Development
Programme (UNDP) in 2020 co- created India's inaugural
SIB. The National Bank for Agriculture and Rural
About the author

Piyush Kumar Jha
Chief Manager (Faculty)
Organization: Union Bank of India,
ZLC Mangaluru

BANKING FINANCE | MAY | 2024 | 49