Skip to content

Social Loans

A social loan is used to finance activities, investments, or projects that contribute to positive social impact. What distinguishes a social loan is that the financing must also be earmarked for a specific target group, such as individuals living below the poverty line or persons or communities experiencing social exclusion.

SEK-blå bakgrund.

Examples of activities and projects that can be financed through social loans include:

  • Basic infrastructure – clean drinking water, sewage systems, sanitation, transportation, or energy – at affordable prices
  • Access to essential services – healthcare, medical services, education, or financial services
  • Affordable housing
  • Job creation initiatives
  • Secure food supply
  • Socioeconomic development and empowerment

SEK’s Criteria for a Social Loan

To be classified as a social loan, the criteria in SEK’s Sustainability Bond Framework must be met. The borrower is expected to use the financing in accordance with the framework.

SEK’s criteria are based on internationally established frameworks to ensure quality and transparency. In its assessment, SEK follows the principles of the Loan Market Association (LMA) and the guidelines of the International Capital Market Association (ICMA).

Reporting

To ensure that the financing achieves its intended impact, it is important that the borrower measures and communicates the expected and actual social benefits of the activity, investment, or project. The borrower is also expected to report relevant metrics to SEK annually, in accordance with the Sustainability Bond Framework.