Praxis Mutual Funds® recently invested in a social bond issued by Bank Nederlandse Gemeenten (BNG). The bank supports government policies by providing affordable financing to municipalities, housing associations, health care and educational institutions, project financing and other public sector institutions.
BNG Bank issued the 8-year EUR 1 billion social bond among international investors to finance the most sustainable housing associations in the Netherlands. With this social bond, BNG is stimulating greater sustainability among its customers in the social housing sector and meeting the demand of capital providers for sustainable investments that also have social impact.
This supports the bank's policy to be able to provide affordable financing to the Dutch public sector and broadens the tools available for housing associations to effectively pursue and monitor their sustainability policies.
BNG worked with Telos, a research institute specializing in sustainable development operations, to develop a social bond framework as part of the bank’s investment in “best-in-class” sustainable municipalities. Housing associations have been assessed from an ecological, social, economic and governance point of view. These pillars combined formed the total sustainability score on which the social housing bond from the BNG bank was conducted. Proceeds of the bond issue are lent to the 92 most sustainable housing associations.
About Praxis Mutual Funds and Everence®
Praxis Mutual Funds, advised by Everence Capital Management, is a leading faith-based, socially responsible family of mutual funds designed to help people and groups integrate their finances with values. To learn more about Praxis and the Impact Bond Fund, visit praxismutualfunds.com.
Everence helps individuals, organizations and congregations integrate finances with faith through a national team of advisors and representatives. Everence offers banking, insurance and financial services with community benefits and stewardship education. To learn more, visit everence.com or call (800) 348-7468.