Dostupný Domov received the first financing from its shareholders* and has already acquired more than 40 flats throughout Slovakia from these sources. The issue of Social Financing SK's social bonds in the estimated value of 10 million euros and the expected maturity of 10 years is to lead to further growth of the project. The sale of the bonds will take place from 30 June, while the issue of the bonds is scheduled for 30 July 2021. The company Dostupný Domov has a long-term plan to own several hundred flats for disadvantaged and vulnerable groups of people.
“We have been dealing with responsible investment in our bank for a long time; after the recent issue of ‘green’ bonds, we are now also offering our clients the opportunity to invest in a socially responsible manner. They can thus invest their money in the first social bond in Slovakia with a positive impact on disadvantaged and vulnerable target groups. I believe that this offer will appeal to our clients and we will be able to obtain as much funding as possible for affordable rental housing in Slovakia,” said Michal Orlovský, Head of Erste Private Banking in Slovakia.
Social Financing SK social bonds
The Bank will primarily offer the social bonds to Erste Private Banking clients and institutional investors; however, retail clients will also be able to purchase them via the George mobile app. The minimum investment amount is 1,000 euros; the maturity is 10 years. The investor will be paid a combined return of 0.15% per annum each year for the first 8 years and then a return of 1.40% per annum during the 9th and 10th years. The issuance of social bonds is part of the ESG strategy of Slovenská sporiteľňa, as a member of Erste Group.
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