Social bonds as a tool for financing concession projects in the housing and communal services sector in Rostov oblast, Russia

The article discusses the possibility of using social bonds as the additional sources of financing in the construction and operation of water supply and sanitation facilities under concession agreements. The specifics of social bonds in accordance with the requirements of the International Capital Markets Association (ICMA) to social impact projects has been clarified. It is proposed to use the social bonds’ circulation mechanism in the implementation of investment projects for the technological modernization of water supply and sewerage networks in the municipalities of the Rostov region. The liquidity of social bonds will be determined by collateral, which will be the government grants, which the investor will be able to receive only if the stated social goals are achieved. In order to reduce risks and increase the attractiveness of social impact projects, it is proposed to use the RR Regional Development Corporation as a project operator and guarantee fund.