IMPACT BONDS: Can they deliver better outcomes, faster...
Transcript of IMPACT BONDS: Can they deliver better outcomes, faster...
IMPACT BONDS: Can they deliver better
outcomes, faster and cheaper?Panel Discussion, October 4, 2017, The World Bank
Credit: Educate Girls
Panelists:Emily Gustafsson-Wright, Fellow, Center for Universal Education,
Brookings Institution
Avnish Gungadurdoss, Managing Partner and Cofounder, Instiglio
Diane Mak, Director, Social Finance U.K.
Simon Bell, Global Lead, Finance and Markets GP, World Bank
Chair:Jaime Saavedra, Senior Director, Education Global Practice, World
Bank
Moderator: Samer Al-Samarrai, Program Manager, REACH, World Bank
Credit: Educate Girls
Impact bonds differ from traditional PbR in
that external investors provide upfront risk
capital in impact bonds
SECTORS: IMPACT BONDS CONTRACTED GLOBALLY
HEALTH
SOCIAL WELFARE
EMPLOYMENT EDUCATION
CRIMINAL JUSTICE
ENVIRONMENT &
AGRICULTURE
Some results to date
• Results July
2017
• Reoffending
down by 9%
• Investors repaid
in full
One Service
Peterborough
• Year 2 Results
• Enrollment 88% of
target
• Equivalent to 54%
of outcome
payment
India Educate
Girls
• 1 out of 110
children needed
special education
• Savings of
$281,550 in
Year 1 (investors
receive 95% of
savings)
Utah High
Quality Preschool
• 203 children
returned to
family over 4
years (63% rate
of restoration)
• Coupon payment
of 16% for year
4
Uniting Newpin
Social Benefit Bond
WHEN TO USE AN IMPACT BOND
* An impact bond works particularly well when robust evidence for a specific intervention exists from prior interventions but where it has not yet been tried in a particular location/context.
KEY QUESTIONS
• How could this tool help the Bank/Bank’s
clients?
• What have been some of the
challenges/facilitating factors for the
impact bonds the Bank is involved in?
• What would the Bank need to do to take
this forward?
For more information on Brookings impact bonds research: www.brookings.edu/series/impact-bonds/
For more information on Instiglio’swork:www.instiglio.com
For more information on Social Finance U.K.’s work:www.socialfinance.org.uk
Credit: Educate Girls
THANK YOU!