MIL OSI translation. Region: Germany/Germany –
Source: Switzerland – Canton Government of Basel Town in German
The actions of the Canton of Basel-Stadt are based on the principles of ecological, economic and social sustainability. A housing policy that covers the needs of the entire population is an important pillar of social sustainability. This also includes an adequate supply of affordable and social housing. The canton of Basel-Stadt has now successfully launched a social bond worth CHF 110 million and has a term of six years. It is the first social bond issued by a municipality, canton, federal government or a Swiss company in Switzerland. The canton is thus making a contribution to the development of social investment solutions and enabling pension funds and specialty funds, among other things, to make social investments.
Defined criteria for the use of funds
Social bonds are loans to finance projects that contribute to social sustainability. Because the bond is earmarked, the investor knows that he is investing in social projects. Aside from this earmarking, social bonds work like conventional bonds. The canton of Basel-Stadt followed the internationally recognized «Social Bonds Principles». An independent auditing company monitors compliance with the defined framework conditions. The Basler Kantonalbank accompanied the launch of the first social bond.
The first social bond serves to maintain affordable housing. In order to qualify as a social bond, the affordable apartments must be offered at least ten percent below the average market rent. The canton of Basel-Stadt uses the bond to finance part of the purchase of the Clara site.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.