Social bonds

MuniFin’s social finance promotes investments that produce widespread social benefits and serve the needs of their users in an exemplary way. Social finance projects promote equality, communality, safety, welfare or regional vitality. We have offered our customers social finance since 2020.

Since its founding, MuniFin has had a major role in financing municipalities and affordable social housing organisations, both of which are integral components of the Finnish welfare society. Due to this mandate, we have always financed projects that create social impacts. In 2020, we launched social finance to find projects that have the greatest positive social impact and promote wellbeing in Finnish society.

Projects eligible for our social finance must meet the requirements of our Social Bonds Framework. Our Social Evaluation Team reviews the applications and approves eligible projects. This three-person team consists of MuniFin’s sustainable finance expert and two independent experts. Every project is analysed individually.

All the social projects that we finance are located in Finland. To make socially beneficial investments more attractive to our customers, we grant approved social finance projects a margin discount of two basis points.

The project categories of MuniFin’s Social Bonds Framework

1. Social housing projects
2. Welfare projects
   • Healthcare facilities
   • Sports facilities
   • Culture facilities
3. Education projects

ISS ESG has carried out a second party opinion on our Social Bonds Framework.