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Australia’s first social impact bond targeting homelessness is successful

jschveibinz 4y ago
This is a great idea. I hope that the experiment is successful.
- pedalpete 4y ago
  The article is literally about the success of the program.
bufferout 4y ago
Paper here: https://apo.org.au/node/318409 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.
aaron695 4y ago
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/ 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.
ecdavis 4y ago
> So far this has led to $8.9m in service costs saved by the South Australian Government. > 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.
deleted 4y ago
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LatteLazy 4y ago
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.

This is a great idea. I hope that the experiment is successful.

pedalpete 4y ago
The article is literally about the success of the program.

Paper here: https://apo.org.au/node/318409 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.

aaron695 4y ago

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/ 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.

ecdavis 4y ago

> So far this has led to $8.9m in service costs saved by the South Australian Government. > 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.

deleted 4y ago

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LatteLazy 4y ago

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.