The global bond market is an important part of capital markets and a key source of finance. However, only 11.3 percent of the bonds issued were reportedly used in environmentally or socially focused areas. COVID-19 accelerated the global market for social and sustainability bonds, implying that the bond market can be extended to wider sustainability issues – going beyond green, to include protecting and empowering vulnerable groups, so no one falls behind.  

In China, the social and sustainability bonds market was in a nascent stage until November 2021, when social and sustainability bonds were introduced to the China Interbank Bond Market through a panda bond pilot program launched by National Association of Financial Market Institutional Investors (NAFMII). The United Nations Development Programme (UNDP) provided technical support and advice for the program.  

To share the experiences with issuers, investors, as well as regulators in China and globally, NAFMII and UNDP co-drafted this issue brief, with the aim of inspiring further market practice and policy innovation for increased SDG contributions on the bond market.