Deutsche Bank announced today that it has raised €500 million through its first-ever social bond offering, with proceeds aimed at supporting the bank’s sustainable asset pool which provides financing for areas including affordable housing, and access to essential services for elderly or vulnerable people.

The issuance follows the publication earlier this year of Deutsche Bank’s Sustainable Instruments Framework, detailing eligible use of proceeds for green and social finance instruments issued by the bank, as well as the process used for asset evaluation and selection, management of proceeds, and reporting commitments.

According to the framework, proceeds from green and social instrument offerings eligible use of proceeds for social bond issuances are designated to assets within Deutsche Bank’s Sustainable Asset Pool, which is composed of loans and investments supporting the transition to a clean, energy-efficient, and environmentally sustainable global economy, and further societal progress. Eligible use of proceeds for social instrument offerings include financing and investments related to the development and provisioning of adequate and affordable housing for disadvantaged populations or communities, or to the promotion and enhancement of access to senior housing with special care.

In a post announcing the new issuance, Deutsche Bank said:

“With this milestone, we expand our ESG issuance programme, which began in 2020 with our first green bond issuance. With the issuance of green and now social financing instruments, we aim to contribute to the further advancement of the sustainable finance market and raise funds that match those we lend to our clients to achieve their goals in transforming their business in a climate-friendly and socially sustainable manner.”

Deutsche Bank announced a series of sustainable finance goals last year, including a target to enable a total of €500 billion in sustainable financing and investments between 2020-2025.