Social impact bond

A social impact bond (SIB), also known as pay-for-success financing, pay-for-success bond (US), social benefit bond (Australia), pay-for-benefit bond (Australia), social outcomes contract (UK), social impact partnership (Europe), social impact contract (Europe), or simply a social bond, is a type of outcomes-based contracting, whereby a contractor typically attempts to effect a policy of government but does not get paid by the government unless specified goals are achieved. The term was invented by Geoff Mulgan, chief executive of the Young Foundation. The first SIB was launched by UK-based Social Finance Ltd. in September 2010.

By July 2019, 132 SIBs had been initiated in 25 countries, and they were worth more than $420m. As of May 2023, 23 countries use SIBs, with (as of 2022) 276 projects in place and capital raised to the value of $745m.

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.