Demand for social bonds jumps...

Social bonds have raised more than $163 billion this year, more than 10 times the $13 billion raised in 2019, according to Linklaters (my law firm, see: More than 680 green bonds and 130 social bonds issued globally so far in 2020).

The transactions in 2020 have been enormous, spurred by the demand for ESG investments, and include issuances by both governments and private market participants.  For example, France raised over $42 billion in 11 bonds for social security debt and its unemployment insurance system; the European Commission raised $20.8 billion in its inaugural COVID-related bond for EU member states to pay the wages of millions of workers in order to protect jobs; and a large, global financial services company raised $2.5 billion for affordable housing in the US -- reportedly the largest-ever social bond from a private sector player.

Expectations are that the growth in these bonds will continue in the face of the pandemic, and that perhaps investor focus will sharpen on what is meant by "social" and how to measure it.  Are you ready?