Latest article from the Islamic Development Bank Institute (IsDBI) Blog. Excerpt below:
"Social Impact Bonds (SIB) are one of the most common instruments under the RBF approach. In the last decade, the use of SIB has been increasing and more studies have been conducted to assess the different experiences of using these instruments in developed as well as developing countries (Fichera & al. 2021, Gungadurdoss, 2021, Lopez Taylor and Bode (2021), https://golab.bsg.ox.ac.uk/the-basics/impact-bonds/). SIB involve investors, especially from the private sector, who are interested in achieving a double dividend by contributing to measurable positive social, economic or environmental objectives and at the same time earning returns on the invested funds (Broccardo & al. 2019). The government represents the outcome payer for these services. However, what differentiates SIB from conventional contracts is the fact that this payment is contingent upon the materialization of the pre-defined outcomes that the government wants to achieve."
Basic Social Impact Bond (SIB) Structure
Image credit - IsDBI Blog
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