Australia’s first social impact bond targeting homelessness is successful(news.flinders.edu.au)
news.flinders.edu.au
Australia’s first social impact bond targeting homelessness is successful
https://news.flinders.edu.au/blog/2022/08/01/bold-model-breaks-homelessness-cycle/
7 comments
Nice to see this actually work. I thought it was an interesting idea back in the day when the Blair government suggested it here in the UK but I doubted anyone would get it working (too much complexity, too hard to value, maybe too easy to just work the metrics). Good news all around.
Paper here: https://apo.org.au/node/318409
tldr; furnishing the homeless with intensive, long-term (if needed) support and rapid access to housing leads to good outcomes- both for them and the broader community.
tldr; furnishing the homeless with intensive, long-term (if needed) support and rapid access to housing leads to good outcomes- both for them and the broader community.
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This is a great idea. I hope that the experiment is successful.
The article is literally about the success of the program.
This will only be profitable for investors if it holds out for 8 years, in 2024.
But it seems like it is going well if you look at current numbers.
> 7.75 year bond term.
> 2% pa fixed coupon over 4.75 years, then performance coupon based on level of Trust assets.
> Termination rights for poor performance to limit downside loss to approximately 50% of principal.
Annual reports and figures -
https://www.socialventures.com.au/work/aspire-sib/
2021 report (all years so far have been the fixed coupon at 2%) -
> The Outcome Payment to be made by the SA Government following each Calculation Date is determined as:
> ● 100% of the first $13.5 million of cumulative program savings; plus
> ● 50% of the next $15 million of cumulative program savings; less
> ● all previous payments ($6.89m to date).
> Accordingly, an Outcome Payment of $6.49 million will be paid to the Aspire SIB Trust by the end of 2021.
But it seems like it is going well if you look at current numbers.
> 7.75 year bond term.
> 2% pa fixed coupon over 4.75 years, then performance coupon based on level of Trust assets.
> Termination rights for poor performance to limit downside loss to approximately 50% of principal.
Annual reports and figures -
https://www.socialventures.com.au/work/aspire-sib/
2021 report (all years so far have been the fixed coupon at 2%) -
> The Outcome Payment to be made by the SA Government following each Calculation Date is determined as:
> ● 100% of the first $13.5 million of cumulative program savings; plus
> ● 50% of the next $15 million of cumulative program savings; less
> ● all previous payments ($6.89m to date).
> Accordingly, an Outcome Payment of $6.49 million will be paid to the Aspire SIB Trust by the end of 2021.
> The Aspire SIB is a $9 million bond which has a life of 7 years.
Extraordinary that in addition to the social impact, this program appears to be heading towards profitability.