July 01 2016

SIB News from across the commonwealth, Britain, Canada and India amongst others…

All the best to American readers celebrating Independence Day on Monday.

 

The Countdown To Launching SIBs In Ontario Is Underway

Barry Critchley – Financial Post

The good news is that the start line for the first social impact bond to be developed in Ontario and brought to the market is within sight.

And when the line appears, investors will be able to purchase a fixed income security that combines a financial return plus a social return – provided, of course that positive measurable outcomes are achieved. “Money is at risk, given that returns are based on outcomes,” said Susan Manwaring, a partner at Miller Thomson whose practice is advising organizations in the social and community sector.

Manwaring said social impact bonds and a social enterprise strategy, which have been used elsewhere, “are ideas and new instruments that people are saying ‘why don’t we see if we can make this work.”

Manwaring, who has been on panels that have advised governments on social impact investing, added there is a potential upside: more resources may be put into areas or projects where it can be shown the outcomes are positive.

 

Social Impact Bonds – How Should You Prepare?

Third Sector

Last year the Chancellor announced an additional £80m over the next four years to be invested in social impact bonds (SIBs). The money will be used to help tackle issues including homelessness, mental health and youth unemployment.

SIBs require investors to pay up-front for projects that help tackle social problems, and then receive payments based on the results achieved.

SIBs can be a complicated and costly tender process as you need to tender twice – firstly to social investors, and secondly to the commissioners. It’s therefore extremely important to prepare in advance, ensuring you have effectively assessed your suitability to SIB contracts and can be ready to apply when the opportunities arise. This requires internal capacity and operational readiness in order to succeed. We would strongly suggest applying for grant funding to enable you to undertake some steps.

 

India – Push To Formalize Impact Investments

Moyna Manku – Livemint

Putting in money for social development is believed to be the responsibility of either the government—as part of the welfare for its citizens—or charitable rich individuals and institutions.

But industry body Impact Investors Council (IIC) suggests otherwise. Keen to create a formal industry for impact investments, IIC has submitted recommendations to the finance ministry advocating recognition of impact investing as a separate asset class ahead of India’s first impact investor conclave to be held in November later this year.