Commentary & Deal Flow

Council of Europe Development Bank, rated Aaa/AAA/AAA (Moody's/S&P/Fitch), has mandated BofA Securities, Daiwa Capital Markets, NatWest and RBC Capital Markets to lead manage a new 3-year US$ fixed rate Global SEC-Registered Social Inclusion Benchmark Bond. The transaction is expected to be launched and priced in the near future, subject to market conditions.

• Use of Proceeds: The CEB intends to allocate an amount equal to the net proceeds raised through this Social Inclusion Bond to a portfolio of Eligible Social Loans, selected in accordance with the Social Eligibility Criteria set out in the Use of Proceeds section of its Social Inclusion Bond Framework in one or several of the following sectors of action: social housing for low-income persons; education and vocational training; health and social care; support to MSMEs for the creation and preservation of viable jobs. Proceeds will be managed with the aim to achieve a level of allocation for the portfolio of Eligible Social Loans which matches or exceeds the balance of the net proceeds from the outstanding portfolio of Social Inclusion Bonds. Additional Eligible Social Loans will be added to the Eligible Social Loans portfolio to the extent required to ensure that an amount equal to the net proceeds from outstanding Social Inclusion Bonds will be allocated to Eligible Social Loans.
• Reporting: The CEB intends to provide aggregated reporting for all of its Social Inclusion Bonds outstanding and will publish a Social Inclusion Bond Report, consisting of an Allocation Report and an Impact Report, annually, at least until the proceeds have been fully allocated. The last report was published in March 2026.
• ESG Ratings: Leader AAA / Prime / Negligible ESG Risk (MSCI / ISS-ESG / Sustainalytics)
• Target Market: The manufacturer target markets (UK MiFIR / MIFID II product governance) as assessed by the lead managers are professionals and eligible counterparties (all distribution channels).
• Stabilisation: FCA/ICMA Stabilisation.