ICO - Social Bonds
ICO's main role is to promote economic activities that contribute to the growth and development of the country while improving the distribution of wealth, especially sectors identified as a priority due to their social, cultural, innovational or environmental significance.
This is the context in which ICO is launching its "social bonds" in order to create or maintain employment in Spain's most economically disadvantaged regions.
To achieve this objective, the funds raised via the "social bonds" will be used to finance SME projects in those regions where income per capita is below the national average. Funding will be offered to businesses through Second-Floor Facilities, one of the main pillars of ICO's activity.
ICO "social bonds" recognise the key role played by micro-businesses and SMEs in creating employment and the recovery of the Spanish economy, enabling investors to support their investment projects.
ICO has been certified as a "responsible issuer" in order to launch its "social bonds". This certification is awarded by Sustainalytics, an independent auditing organisation that specialises in corporate social responsibility analysis.
Eligibility criteria for funding
The funds raised via the "social bonds" will be channelled through second-floor facilities to finance micro-businesses and SMEs. Companies must fulfil the following criteria:
- Be a micro, small or medium-sized enterprise, in accordance with the EU definition.
- Be located in a region with a GDP per capita that is below the national average. More information
- Not carry out their activity in any of the sectors that are not considered to be sustainable in terms of social responsibility. More information
Commitment to investors
To certify that the funds raised via the "social bonds" are being used to finance enterprises that fulfil the eligibility criteria, ICO agrees to publish the following reports after a twelve month period:
- ICO will explain the distribution of the funds raised, by region and by sector, including the number of SMEs, the number of employees, etc.
- Sustainalytics review document: ICO will publish the Sustainalytics assessment report 12 months after the issue, which will confirm if the loans granted to SMEs using the funds raised fulfil the eligibility criteria.
ICO, a socially responsible company
To be able to issue the "social bonds", ICO has been certified as a "Socially Responsible Issuer" by an independent auditor. This certification is awarded by Sustainalytics, a leading company in corporate social responsibility analysis.
This accreditation is another step forward for ICO in the field of CSR. The Institute has already been certified as a Socially Responsible company by Bureau Veritas and as a Family Responsible Company. It is also a member of the Spanish Network of the United Nations Global Compact. More information
Corporate Social Responsibility Indicators. Download PDF file
Sustainalytics second opinion. Download PDF file
Press release: ICO issues its first "Social Bonds" in Spain for €1 billion.
Social Bond reporting. February 2016. Download PDF file
ICO Social bond portfolio review. February 2016. Download PDF file
Social Bond reporting. May 2017. Download PDF file
Methodology report on the employment impact of ICO's Social Bond. Download PDF file
ICO Social bond portfolio review. May 2017. Download PDF file