What type of bonds are associated with projects yielding positive social outcomes?

Social bonds are specifically designed to fund projects that yield positive social outcomes. These bonds are issued with the intent to finance initiatives that address social issues, such as affordable housing, education, healthcare, and employment generation. The key defining characteristic of social bonds is their focus on funding projects that provide societal benefits, often targeting disadvantaged or marginalized communities.

Investors in social bonds are motivated not only by financial returns but also by the social impact of their investments. This aligns the objectives of both issuers and investors towards achieving measurable positive social change. Social bonds often come with clear frameworks that outline the expected social benefits and the metrics used to assess the impact of the funded projects.

While green bonds and sustainability bonds focus on environmental and broad sustainability outcomes respectively, they do not specifically address social issues in the same way that social bonds do. Corporate bonds, on the other hand, are typically issued by companies to raise capital for general projects without necessarily focusing on social or environmental outcomes. Thus, social bonds are uniquely positioned within this context to address and improve social conditions directly.