What is it?
Social impact bonds are a mechanism by which capital can be raised to invest in socially focussed projects that promise to deliver improved social outcomes for local people. Investors see their cash returned year on year in interest if the project is successful; if it fails, their investment may be lost.
Who’s doing it?
Bristol: A local bond to help ex-offenders into work
Bristol Together CIC is a community interest company set up by Paul Harrod in 2011. The mission for Bristol Together CIC was to provide work for ex-offenders by bringing empty properties back into use and paying at least a living wage with a view to reducing re-offending rates. To date they have been issuing social investment bonds to raise the capital needed to finance the purchase and renovation of empty properties. Bristol Together CIC have been able to issue these bonds with the help of the corporate finance team at Triodos Bank. Throughout the life of the five-year bond, Bristol Together CIC intend to pay over £1m in wages and create jobs for up to 150 ex-offenders.
The project has proved a winning formula and the Midlands and Glasgow have since joined The Together Group and are running similar schemes in their local areas.
- More info here
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