About
Social Bonds are any type of bond instrument where the proceeds, or an equivalent amount, will be exclusively applied to finance or refinance, in part or in full, new and/or existing 'Social Projects', which are projects with positive social outcomes.
Qualifying categories include finance projects that directly aim to address or mitigate a specific social issue and/or seek to achieve positive social outcomes, e.g. affordable basic infrastructure, access to essential services, affordable housing, employment generation, food security or socioeconomic advancement and empowerment.
Who does it impact?
Bond issuers and other actors in the international bond market.
Status: Launched
In force and updated on a regular basis.
The latest updated edition of the Principles is from June 2025. Along with assets, investments, and other associated and supporting expenditures, the 2025 edition of the SBP now also includes "activities" in the definition of Social Projects.
The 2025 Guidance Handbook also includes a new FAQ confirming the likely ineligibility of defence projects for Green, Social and Sustainability Bonds, and expanded guidance on the use of Social Bonds to support vulnerable populations in fragile and conflict states."
Relation to other initiatives and regulations
The Social Bond Principles are drafted by the International Capital Market Association and are closely connected to the Green Bond Principles, the Sustainability Bond Guidelines and the EU Green Bond Standard.
Participants
Membership is open to organisations that have issued, underwritten or placed, or invested in a Green, Social or Sustainability Bond.
Thommessen's comments
The Social Bond Principles, together with the Green Bond Principles, the Sustainability-Linked Bond Principles and the Sustainability Bond Guidelines, have become the globally leading framework for issuance of green, social and sustainability-linked bonds.
The market for Social Bonds aims to enable and develop the role of debt markets in financing projects that address global social challenges and achieve positive social outcomes by raising funds.
The Principles are intended for broad use by market participants. However, alignment with the Social Bond Principles is voluntary.
These principles are still not commonplace in the Nordic bond scene.