26. January 2023

First German social joint bond: Second Party Opinion with development banks


Investitionsbank des Landes Brandenburg (ILB), Hamburgische Investitions- und Förderbank (IFB Hamburg), Investitions- und Strukturbank Rheinland-Pfalz (ISB)


Review of the social bond frameworks according to the Social Bond Principles and preparation of a Second Party Opinion


August 2022


The development banks of the federal states of Brandenburg, Hamburg and Rhineland-Palatinate want to refinance projects in the area of socially subsidised housing with a joint bond. For the social community bond, we are to prepare a summary presentation of the valuation as well as three individual valuations of the frameworks of the respective bank and summarise them in a Second Party Opinion.


We confirm in our Second Party Opinion that the social bond frameworks and the community bond are in line with the Social Bond Principles and that the financed projects from the Affordable Housing category make a positive contribution to three UN Sustainable Development Goals (SDGs).

About the project

In September 2022, the development banks of the federal states of Brandenburg, Hamburg and Rhineland-Palatinate issue the first German social joint bond on the capital market. Independent of the social aspect, it is also the first joint issuance by multiple German credit institutions.

An individual solution is needed. It takes the form of close support for the issuers throughout the entire process – from the structuring phase through to issuance. The result is three separate Second Party Opinions and a summary SPO for maximum transparency for investors. As a final step, we also prepare the Second Party Opinion in English to better address international investors.

In our Second Party Opinion, we confirm that the social bond frameworks are in line with the Social Bond Principles (June 2021) of the International Capital Market Association (ICMA) and that the financed projects from the category Affordable Housing make a positive contribution to SDG 1 “No poverty”, SDG 10 “Reduced inequalities” and SDG 11 “Sustainable cities and communities”. In addition, we assessed the issuers on their ESG risk management performance, their sustainability strategy and conducted a review of controversial business areas and controversies.

The Investitionsbank des Landes Brandenburg (ILB), based in Potsdam, supports the state and other public agencies in promoting public and private investment projects in the areas of business, labour, infrastructure and housing.

The Hamburgische Investitions- und Förderbank (IFB Hamburg) is the central point of contact for private individuals, companies and institutions in Hamburg and provides advice on all funding offers from the city, the federal government and the EU.

The Investitions- und Strukturbank Rheinland-Pfalz (ISB), based in Mainz, supports the state in the implementation of economic, structural and housing promotion.

You are a credit institution or municipality and/or would you like to issue a community bond? Here, external verification and portfolio review are crucial for transparent and credible communication to investors. We are looking forward to supporting you!

Your personal contact

Christina Tyca

Christina Tyca and her team

“We are particularly grateful for the flexibility in terms of time, as we had to postpone the start of the assessment on our part, but still wanted to keep to a tight schedule. The cooperation was always to our complete satisfaction.”

Jork Volkmer,
Treasury Investitionsbank des Landes Brandenburg (ILB)