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The Employment Fund as an issuer

The Employment Fund is entitled to take out loans to fulfil its obligations on the basis of the Act on Financing Unemployment Benefits. If the Employment Fund’s debts exceed its assets, the government may issue sate-backed guarantees without requiring counter-guarantees. The government may set conditions on the guarantees it issues. The Employment Fund may also borrow to safeguard its liquidity with the permission of the Financial Supervisory Authority. However, the Financial Supervisory Authority’s permission is not required for borrowing if the Employment Fund’s business cycle buffer is negative.

The Employment Fund has agreed on a commercial paper programme with six banks.  The maximum value of the commercial paper issued within the remit of this programme is EUR 300 million.

The Employment Fund has agreed on a standby credit facility with four major Nordic banks in the value of EUR 600 million. 

Investor Presentation

Credit rating

Credit rating report (July 4, 2023)

Credit rating report (October 7, 2022)

Credit rating report (September 30, 2021) 

Credit rating report (September, 29, 2020)

Credit rating report (September 25, 2019)

Credit rating report (September 24, 2018)

Credit rating report (September 20, 2017)

Credit rating report (September 30, 2016)

Credit rating report (May 10, 2016)

Credit rating report (October 06, 2015)

Credit rating report (June 12, 2015)

Credit rating report (May 21, 2015)


Social Finance Framework 

We have prepared a social finance framework, which makes it possible to tie our debt financing together with socially positive impacts. The framework has been drawn up in accordance with the Social Bond Principles updated in 2021 by the International Capital Markets Association (ICMA) and the Social Bond Principles updated in 2023 by the European Loan Market Association (LMA). The framework enables the acquisition of targeted debt financing that drives social benefits in the form of various financial instruments. 

ISS ESG acted as an external evaluator of the framework, and according to their independent assessment, the Employment Fund's framework is aligned with the requirements outlined in the Social Bond Principles and has positive social impacts. Nordea acted as an advisor to the Employment Fund in preparing the framework. The framework has been prepared to be applied in the possible future loan financing needs of the Fund. Employment Fund currently has no loans to which the social finance framework has been applied.  

Applying the framework 

The framework is applicable, but not limited to, for issuance of social debt instruments including, but not limited to, social bonds, social commercial papers, social loans and other types of debt instruments where an amount equal to the net proceeds will be applied to finance or re-finance, in part or in full, new and/or existing expenditures with social benefits 

Employment Fund’s Social Financing aims to address the social and economic impacts of unemployment and create opportunities for career development. To achieve this objective, social expenditure financed through the social finance framework are divided into two main categories that align with the Employment Fund’s core mission: ​ 

  • Alleviate social and economic consequences for changes in working life due to involuntary unemployment, reduce work hours or partial unemployment by ensuring financial security through a replacement income, and​ 

  • Support individuals with their professional development and re(integration) by providing the opportunity to develop skills and qualification or support career changes or entrepreneurial projects.  

Management of proceeds and reporting 

The Employment Fund has established a Social Financing Register to track and monitor all issued amounts of social debt instruments. The purpose of the Social Financing Register is to ensure that an amount equal to the Social Financing net proceeds is allocated to eligible expenditures. 

We will publish a report on the allocation and impact of Social Financing issued under this framework on our website. The report will be published annually until full allocation, as long as the Fund has Social Financing outstanding.

Further information about the framework and its assessment

Employment Fund's Social Finance Framework (PDF)

ISS ESG's Assessment Report (PDF)

Page updated: 12/6/2023