Social State Bond

The Czech Republic Social Finance Framework

The Czech Republic Social Finance Framework was finalized in August 2025. It defines the eligible social expenditures of the state budget as well as the processes for their monitoring and reporting. 

The Framework is aligned with the the latest internationally recognized market standards: the Social Bond Principles (SBP, 2025) issued by the International Capital Market Association (ICMA) and by the the Social Loan Principles (SLP, 2025) issued by the Loan Market Association (LMA).

The objective of the Framework is to ensure that the proceeds obtained from the issuance of social government bonds are directed towards supporting the achievement of the long-term priorities and social goals defined therein. 

For the purpose of implementing the Framework (including selection and allocation of funds raised under each issued Social Finance Instrument), a Social Finance Working Group has been established, led by the Ministry of Finance and composed of representatives from the Ministry of Labour and Social Affairs, the Ministry of Transport, the Ministry of Agriculture, the Ministry of Education, Youth and Sports, and the Ministry of Health.

The Framework defines the following social categories of eligible state budget expenditures:

• Access to Essential Services – Healthcare
• Access to Essential Services – Education and Vocational Training
• Socio-Economic Advancement and Empowerment – Social Inclusion
• Affordable Basic Infrastructure

Selected state budget expenditures in response to the September 2024 floods have also been included under the categories of Social Inclusion and Affordable Basic Infrastructure. The Framework is designed in full accordance with the budgetary process of the Czech Republic. 

The Ministry of Finance plans to publish an allocation and impact report annually one year following an issuance of Social Finance Instruments, until full allocation is achieved. 

Second Party Opinion

To ensure alignment of the Czech Republic Social Finance Framework with internationally recognized market standards, the Czech Republic obtained an independent assessment from Sustainalytics as of 21 August 2025. The evaluation confirms that the financed projects and the selected social categories detailed in the Framework demonstrably/strongly support the national sustainable development strategy, with the overall Sustainability Contribution of the Framework qualitatively assessed as Significant. Sustainalytics also confirmed the Framework’s alignment with the ICMA Social Bond Principles 2025 and the LMA Social Loan Principles 2025. 

Social Contribution breakdown by category defined in The Czech Republic Social Finance Framework