Bonds That Fight Poverty Are Booming in Covid-Struck Nations
- Health crisis underscores need for socially-focused spending
- Issuers from EMs sold $15.9 billion this year in social debt
This article is for subscribers only.
A new weapon is gaining traction in the fight against the economic fallout of Covid-19: Debt sales designed to alleviate suffering.
Governments and companies in emerging markets have sold close to $16 billion of so-called social bonds so far this year, on pace to shatter last year’s total, according to data compiled by Bloomberg as of close on July 19. These bonds, with proceeds earmarked specifically for projects that address human needs -- such as health, hunger and education -- have already lured fresh investment to Chile and Ecuador, and soon, Ghana.