Fund Overview:
“Ogen Social Bonds 2” is issued by the Ogen Group, a non-profit organization that operates as a social credit organization. Founded in 1990, the purpose of the group is to provide access to credit as well as financial guidance to disadvantaged populations in Israel, businesses and non-profit organizations that are facing financial obstacles. The group is issuing “Ogen Social Bonds 2”, which is a non-tradable, floating rate bond. The bond is privately issued in the overall amount of 150M Shekel, and is backed by an existing portfolio of loans to businesses and non-profit organizations in order to expand its sources of equity.

Strategy:
Created in order to make credit and financial support accessible to vulnerable populations in Israel, businesses and non-profit organizations. For the purpose of expanding its capital sources, Ogen issues social bonds backed by a loan portfolio. The social bond is built on the basis of layers of financing and allows investors to choose between two layers of debt – senior debt and ordinary debt. Each layer of debt offers a different risk\reward ratio, while the equity layer (derived from philanthropic financing) will act as a protection layer for the entire portfolio up to a credit default rate of 17.5%. The composition of the loan portfolio backing the bond, is expected to be spread over approximately 930 loans and based on an in-depth underwriting process and extensive experience of Ogen managers in the credit field.

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Ogen Social Bonds