Basque Government
Bilbao, Spain| Invested through |
|
|---|---|
| Asset Classes | Impact bonds |
| Impact strategy | Impact Equities and Bonds |
| ISIN code | ES0000106643, ES0000106635 |
| Aligned with SDGs |
Triodos invests in regional government bonds from EU member states and the UK. We only select subsovereigns from countries that have no involvement in international sanctions, and that have signed and ratified international conventions on controversial weapons, human rights, labour rights, and the environment. This includes the International Labour Organization (ILO) conventions (e.g. on child labour, and forced labour), the international convention on civil and political rights, the biological and chemical weapon conventions, the non-proliferation of nuclear weapons treaty, the Paris Climate Agreement and the convention on biological diversity.
Investment rationale
The Basque country’s 2020 sustainability bond finances social and environmental projects. The projects selected for the bond are Socioeconomic advancement (23%), Education (17%), employment generation (14%), Health care (13%), Affordable Housing (14%), Clean Transport (13%), and renewable energy (4%). In total, 81% of the proceeds have a social character and 19% an environmental character.
Projects financed through the bond include social emergency assistance programs, family support benefits and income security allowance. Furthermore, expenditures for job creation are directed at disadvantaged areas and people with little or no prior work experience, people with disabilities, aiming to address root causes of job insecurity and unemployment. Moreover, the proceeds are used for building and equipping nurseries and primary schools, vocational training schools, as well as university and non-university scholarships. Health care related financing includes public health infrastructure and the provision of healthcare to under-served populations. Given that the region’s public healthcare services are financed by the government and hence free of additional costs for patients, the improvements in the system are beneficial for all parts of the population, including vulnerable and disadvantaged groups.
ES0000106643
In total, 48% of revenues is aligned with the Societal Transition, 36% of revenues is aligned with the Wellbeing Transition, 13% of revenues is aligned with the Energy Transition and 3% of revenues is aligned with the Resource Transition.
ES0000106635
In total, 47% of revenues is aligned with the Societal Transition, 27% of revenues is aligned with the Energy Transition, 21% of revenues is aligned with the Wellbeing Transition and 5% of revenues is aligned with the Resource Transition.