Royal Bank of Scotland Group is preparing to sell its first social senior bond from its holding company, according to reports, aiming to use the funds raised to support some of the most economically deprived regions of the UK.

It will be the first “social bond” by a UK financial institution.

The proceeds of the bond would back lending to small and medium-sized companies (SMEs) in areas of the UK with higher unemployment, as well as to refinance outstanding loans to such businesses.

Reports say Royal Bank of Scotland Group has commissioned ABN Amro, Credit Agricole, ING, Nat West Markets and Nomura to run investor meetings across Europe.

Scott Forrest, head of treasury debt capital markets at RBS, told the Financial Times: “No purely social bond from a UK financial institution has been issued before.”