Finland's First Corporate Social Bond: A Landmark Move in Sustainable Financing
In a groundbreaking step for the Nordic corporate landscape, Sanoma Corporation, a leading Finnish learning and media company, issued Finland’s first corporate social bond in September. Listed on the Nasdaq Sustainable Debt Market at Nasdaq Helsinki, the €150 million bond marks a shift towards integrating social impact into corporate financing.
Kaisa Uurasmaa, Sanoma's Head of Investor Relations and Sustainability, expressed surprise at the enthusiastic reception the bond received, reflecting a growing appetite among investors for socially responsible financial instruments. Axel Anderstedt-Holm, Head of European Debt Listings and Sustainable Bonds at Nasdaq, emphasized the significance of the issuance, stating that social bonds have historically been the domain of governmental agencies, and he hopes to see more corporates in the Nordic region adopt this model.
A Pioneering Framework for Social Impact
Developed in line with the International Capital Market Association’s (ICMA) Social Bond Principles, the framework behind Sanoma’s bond aims to support inclusive learning solutions, digital education platforms, and strategic acquisitions. Swedbank, a key partner in the project, introduced Sanoma to the concept of social bonds—a move that Uurasmaa described as a unique opportunity to tie the company's financing to its learning business’s capital and operational expenditures.
The framework also earned a second-party opinion from ISS-Corporate, affirming its alignment with the UN Sustainable Development Goals (SDGs), particularly Goal 4, which promotes quality education. Annual reporting, including key performance indicators from a long-running European teacher survey, will help quantify the bond's social impact, enhancing transparency for investors.
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