What Is a Social Bond

A social impact bond (SIB) is a contract with the public sector or governing authority, whereby it pays for better social outcomes in certain areas and passes on the part of the savings achieved to investors. … If the objectives are not achieved, investors receive neither a return nor repayment of principal.

How do social bonds work?

A social impact bond (SIB) is a contract with the public sector or governing authority, whereby it pays for better social outcomes in certain areas and passes on the part of the savings achieved to investors. … If the objectives are not achieved, investors receive neither a return nor repayment of principal.

What is a social bond offering?

A bond is like a loan – only it is companies and governments that issue bonds and investors who lend them the money. Social bonds are special bonds that fund a range of causes from access to education to affordable transportation, healthcare, and food supply protection.

Sarah Jenkins

Sarah Jenkins

Senior Technology Editor & AI Specialist

Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.

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