Promoting the inclusion and use SIB to help young people get back on track in Belgium
A Social Impact Bond (SIB) is a social financing mechanism which draws on private capital in order to finance an innovative social project. This approach involves a Social Services Provider who is responsible for implementing the project and an Outcomes Payer who undertakes to pay back the investors if the project is successful in meeting its goals.
Totalling 1.7 million euros, this SIB has been created to finance Back On Track, the Oranjehuis programme working towards the reintegration of 133 young adults aged 17 to 25 and in imminent risk of homelessness, by 2023. To achieve this objective, the organisation will be using the Housing First for Youth system, a methodology that focuses first on access to sustainable housing for young people before beginning intensive and personalised support for their social and professional (re)integration.
BNP Paribas is investing €852,000 in this programme, partly through the “BNP Paribas European Social Impact Bonds Fund”, and partly through direct investment by BNP Paribas Fortis.
10 SIBs have now been structured by BNP Paribas and launched in France, the United States, and Belgium
Max Jadot, Chief Executive Officer of BNP Paribas Fortis: “Ours is the first Belgian bank to structure a Social Impact Bond. This very innovative programme, which is expected to help 133 young adults find a way out of extreme instability, is a perfect fit with the social commitment of BNP Paribas Fortis.”
Laurence Pessez, Global Head of CSR at BNP Paribas: “By signing this SIB, BNP Paribas is confirming its commitment to combining financial innovation with positive impact. We have structured 10 SIBs worldwide for a total of nearly €30 million, including an investment by BNP Paribas of nearly 9 million euros.”
If successful, these 10 SIBs will allow over:
- 1,000 vulnerable people to access long-term employment or adequate training;
- 1,000 students to benefit from special support to improve their academic achievements;
- 600 children to avoid being placed in institutions;
- 100 young people in imminent risk of homelessness to access housing.
Photo : header ©carles