Local bonds for local people

By Lewis McLellan
18 Feb 2020

By opening up its debut social bond to retail investors, Munich highlighted an often overlooked strength of the socially responsible investment (SRI) market. Distributed correctly, these funding tools demonstrate the true impact of ethical investing.

Munich’s deal, sold last week, will fund the purchase of accommodation in the city and protect citizens from rent increases. It raised €120m of 2032 paper at a spread of 15bp to mid-swaps.

The city did not need to issue a bond to fund this project — indeed, the ...

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