The Council of Europe Development Bank (CEB) reopened its €1 billion seven-year Social Inclusion Bond (SIB), following the investment of €100 million by the Bank of Lithuania. The CEB issued this SIB in April this year to bolster its response to the refugee crisis caused by the war in Ukraine and to help its member states assist millions of people seeking safety.
CEB Governor Carlo Monticelli commented: “The SIB subscription by the Bank of Lithuania testifies to the important role that CEB plays in the social bond market and in supporting the longer-term needs of Ukraine refugees and their host communities. We are delighted that the Bank of Lithuania is partnering with CEB in this worthwhile cause.”
The reopening of an existing SIB is made possible thanks to CEB’s updated SIB Framework and its new portfolio approach for the management of proceeds. According to this framework, SIB proceeds can finance projects in one or several sectors of action: social housing for low-income persons, education and vocational training, health and social care, and support to MSMEs for the creation and preservation of jobs.
Governor Gediminas Simkus emphasized: “The Bank of Lithuania invested €100 million in a SIB issued by CEB. The proceeds will primarily be used to assist Ukrainian refugees in various countries. Since the outbreak of the war in Ukraine, the Bank of Lithuania has sought to actively assist the country and its people therefore we are in close contact with the National Bank of Ukraine. We wholeheartedly support Ukraine. At the end of the year, we also plan to issue a silver collectible coin, the proceeds of which will be allocated to Ukraine’s needs too.”
Lithuania has so far welcomed more than 65,000 refugees from Ukraine. With a €120 million loan to the Government of Lithuania and more than €900,000 in grants from the Migrant and Refugee Fund (MRF) the CEB is helping the authorities assist people fleeing the war in Ukraine.
The CEB was the first MDB to disburse grants to provide immediate assistance to refugees from Ukraine, followed by loans to ensure long-term integration. It has so far approved a total of €6.4 million in grants from its MRF and €1.3 billion in loans to meet the long-term needs of the refugees and the host countries.
See also: 🔴 LIVE UPDATES | Humanitarian response to Ukraine crisis
