With the issuance of a social bond, the City of Munich wants to refinance projects that provide access to schooling and vocational training as well as affordable housing for low-income households. The goal is to protect tenants in Munich.
In our Second Party Opinion, we confirm that the Social Bond Framework is in line with the Social Bond Principles and that the financed projects from the affordable housing and education infrastructure category make a positive contribution to four UN Sustainable Development Goals (SDGs).
The funds from the Munich city bond (“Münchner Stadtanleihe”, 120 million EUR), are mainly used to protect tenants in Munich.
In our Second Party Opinion we confirm that the Social Bond Framework is in line with the voluntary guidelines of the International Capital Market Association (ICMA) Social Bond Principles (June 2021). The financed projects from the affordable housing and education infrastructure category contribute positively to SDG 1 “No Poverty”, SDG 4 “Quality Education”, SDG 10 “Reduced Inequalities” and SDG 11 “Sustainable Cities and Communities”. In addition, we conducted the ESG risk management performance of the issuer, its sustainability strategy and a review of controversial business areas and controversies.
In January 2021, we additionally reviewed the reporting for the City of Munich’s social bond. In this impact assessment from March 2021, the city treasury reported on the distribution of proceeds and the associated positive social impact. We confirmed that the City of Munich complied with all reporting obligations to which it committed in the Social Bond Framework.
Are you a municipality and would like to issue a social or a green bond? Municipalities often have diverse tasks that can be covered by sustainable financing instruments. They also have implemented structures that ensure a credible use of the funds. We are looking forward to supporting you!