Social bonds offer alternative financing for industries impacted by COVID-19

In December 2019, a novel strain of coronavirus (COVID-19) was reported in Wuhan, China. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, reaching over 690,000 confirmed cases worldwide by late March. During that period, COVID-19 has already had a significant effect on the global economy, shutting down all but essential businesses. Additionally, stock markets have plunged and access to credit markets has been limited. Governments around the world are proposing fiscal and monetary stimulus packages as well as other assistance to people and companies affected by COVID-19.

We suggest that certain companies, sovereigns and quasi-sovereigns could issue social bonds to finance or re-finance a part of their financial needs resulting from the COVID-19 global crisis.

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