Primer on Social Bonds and Recent Developments in Asia

Abstract

Innovative financial instruments to support more inclusive development have emerged in recent years. These include social bonds designed to raise proceeds for projects with positive social outcomes. Social bonds can help Asia meet its long-term objectives in line with the Sustainable Development Goals and also facilitate the transition to a more inclusive economic recovery from the coronavirus disease (COVID-19). This publication explains why social bond market development is vital to financing the sustainable recovery of Asia from the pandemic. It also outlines salient barriers to social bond market development in the region and potential solutions to overcome them.