SOCIAL

Product Innovation

Products or business models innovated towards addressing social challenges include, but are not limited to:

Products Description

Social bonds 

Social bonds are fixed-income securities. They encompass any type of bond instruments where the proceeds of a bond are used to finance or refinance projects with positive social benefits. Such projects are, for example, affordable housing, food security projects or projects that provide access to essential services, such as healthcare, education or financial services.

Further, according to the ICMA Social Bond Principles and the ACMF ASEAN Social Bond Standards, it is common practice to define target populations to be financed projects. This allows for addressing gender equality and inclusion of minority groups.

Relevant Framework:

Sustainability Bonds

Sustainability bonds are fixed-income securities. They are issued by institutions that are implementing and/or providing finance to projects with social and/or environmental benefits. The proceeds of sustainability bonds hence serve to finance – or refinance – according to projects.

 

Relevant Framework:

Gender bonds

Gender bonds are a subset of social bonds that focus on financing enterprises or companies that are committed to reducing gender inequality and actively promote women´s economic empowerment. Proceeds can be provided directly to companies or intermediaries such as micro-finance institutions.

 

Relevant Framework:

Islamic Social Impact Bond (Waqf Sukuk)

The assets or investments which are given by their owners based on the concept of trust where the proceeds are meant to be utilised for the sake of public at large.

Social Impact Bonds / Humanitarian Impact Bonds

Social impact bonds (SIB) are results-based financing instruments that serve to finance projects with measurable social outcomes. SIBs are a contractual and results-oriented financing solution rather than a traditional bond. In particular, they are used by public entities and social service providers with social missions but insufficient financial resources to implement mission-driven projects. SIB serve to allocate the performance risks of financed projects to the investor instead of the project sponsor (public entity/ social service provider) by tying the financial return of the investment directly to the success (social outcomes) of the project. Humanitarian Impact Bonds are a subset of SIB and serve to finance initiatives with measurable human well-being benefits. They are used by organisations working in the humanitarian space.

Microfinance

Microfinance is a multi-faceted financial services strategy targeted at low-income populations and aimed at reducing poverty. Services can include loans, savings, money transfer and microinsurance. Microfinance services focus in particular on women as experience and collected evidence shows that women are more reliable in servicing debt and proved to reinvest profits into their businesses, families and communities. Microfinance is, therefore, a vital financing instrument for women empowerment and female entrepreneurship.

Microinsurance

Microinsurance is a sub-category of microfinance, focussed at providing tailored insurance solutions to the needs of low-income or financially marginalised people/ households. This can include insurance against illness, injury, death, loss or damage to property and means of income.

Socially responsible ETF

Socially responsible exchange traded funds (ETFs) are listed equity like instruments that invest into companies that meet’s the fund social criteria.

Private equity health fund

Private equity health funds are unlisted, closed-end funds investing solely in health care companies.

Social infrastructure

Social infrastructure covers direct investments, either debt or equity, into infrastructure that has a high social contribution. This can include affordable housing, schools and hospitals.

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