State of Saxony-Anhalt
Magdeburg, Germany| Invested through |
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|---|---|
| Asset Classes | Impact bonds |
| Impact strategy | Impact Equities and Bonds |
| ISIN code | DE000A351SC5 |
| Aligned with SDGs |
The State of Saxony-Anhalt is one of the smaller states (by population and size) in Germany. It was formed in 1945 after WW2 and became part of East Germany. Following the reunification of Germany, the state was re-established and became one of Germany's newest states. Important industries in Saxony-Anhalt include food, metal processing and manufacturing, and chemicals. Saxony-Anhalt is rich in cultural heritage and has the highest concentration of UNESCO World Heritage sites in Germany. The state now aims to develop the tourism industry post pandemic to boost its economy.
Investment rationale
Together with the Covid-19-pandemic, the ongoing structural transformation of the state, including demographic and societal, highlight the vulnerability of the economy and society of the state of Saxony-Anhalt. The state identified four social fields of action: strengthening the healthcare system, resilience through digitalisation, education and science, and economy, labour and society. The expenditure list is legally defined and provide high visibility on the issuer's ambition and intention and allows us to follow the potential impact from the issuance(s). Most of the proceeds is concentrated on access to essential services including healthcare and education. There is also focus on employment generation and unemployment prevention and alleviation caused by socioeconomic crises, the rest is divided between affordable infrastructure and socioeconomic empowerment.
80.4% of the bond's proceeds is allocated to the Wellbeing Transition and 19.6% to the Societal Transition. The contribution to Societal Transition comes from 9.7% of proceeds allocated to Employment Generation, 6.0% of proceeds allocated to Affordable Basic Infrastructure: Communication, and 3.9% of proceeds allocated to Socioeconomic Advancement & Empowerment.
The contribution to Wellbeing Transition comes from 80.4% of proceeds allocated to Access to Essential Services.