IMPACT BONDS: Can they deliver better outcomes, faster...

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IMPACT BONDS: Can they deliver better outcomes, faster and cheaper? Panel Discussion, October 4, 2017, The World Bank Credit: Educate Girls

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 BOND PRIMER

IMPACT BOND PRIMER

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

SECTORS: IMPACT BONDS IN DEVELOPING COUNTRIES

CONCRETE EXAMPLES OF IMPACT BONDS IN

DEVELOPING COUNTRIES

POTENTIAL AND LIMITATIONS OF

IMPACT BONDS

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

What problem are you trying to

solve? Can it be solved by paying for outcomes?

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.

IMPACT BONDS IN THE CONTEXT OF THE

WORLD BANK

AUDIENCE Q & A

Credit: ADPP

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!