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Finnfund Sustainability Bond

Finnfund leverages financing for sustainable development globally by providing investment opportunities for private investors. Mobilising private capital is key to achieving the Sustainable Development Goals (SDGs) in developing countries, given that the UN estimates the financing gap at USD 2.5 trillion per year.

Increasing the level of private capital is therefore one of Finnfund’s strategic goals and we work as a catalytic investor by leveraging partners, additional capital and expertise for projects that contribute to progress towards the SDGs. Moreover, we use our leverage as a development financier to encourage our investees to constantly improve their sustainability practices towards people, the environment and society.

By setting up a Sustainability Bond Framework, Finnfund aims to mobilise debt capital to support our mission to generate lasting impact by investing in businesses that solve global development challenges.

Sustainability Bond Framework

The Sustainability Bond Framework is aligned with the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines, all as published by the International Capital Market Association (ICMA) in 2021.

The framework, outlined in the figure below, allows Finnfund to issue three types of bonds:

  • Green Bonds, to finance and/or refinance eligible green lending, equity investments, and mezzanine financing mainly targeting the objective of climate change mitigation and adaptation (“Green Projects”);
  • Social Bonds, to finance and/or refinance eligible social lending, equity investments and mezzanine financing mainly targeting improved living and health conditions for underserved groups (“Social Projects”);
  • Sustainability Bonds to finance and/or refinance a mix of Green Projects and Social Projects.

Second party opinion by Sustainalytics

Sustainalytics has provided a second-party opinion to this Framework, verifying its credibility, impact, and alignment with the ICMA Green Bond Principles 2021 and Social Bond Principles 2021, as well as with the Sustainability Bond Guidelines 2021.

The framework is available here Finnfund Sustainability Bond Framework (pdf)

The second-party opinion by Sustainalytics is available here Finnfund Sustainability Bond Framework Second-Party Opinion (pdf)

Finnfund’s Sustainability
Bond platform, including potential
bond formats, green and social
project categories, and examples of
impact indicators to be measured in
the annual impact reporting.


Finnfund will annually, until full allocation and in the event of any material developments, provide investors with a publicly available Sustainability Bond Report  describing the allocation of proceeds and the social and environmental impact of the Eligible Projects.

More information

Olli Sinnemaa, Chief Financial Officer,,  tel. +358 50 422 6478
Petri Järvinen, Senior Treasury Analyst,, tel. +358 50 374 0558

Read more

Finnfund issues a EUR 75 million sustainability bond – Finnfund
Finnfund publishes Sustainability Bond Framework – Finnfund
Investing – Finnfund
Impact – Finnfund
Strategy and governance – Finnfund