IDEAS home Printed from https://ideas.repec.org/a/taf/pubmmg/v40y2020i3p225-236.html
   My bibliography  Save this article

Attracting investors for public health programmes with Social Impact Bonds

Author

Listed:
  • Elaine de Gruyter
  • Dennis Petrie
  • Nicole Black
  • Philip Gharghori

Abstract

Social impact bonds (SIBs) have emerged as an innovative financing mechanism. This paper explores how health SIBs align with investors’ expectations and the conditions required to attract investors. At present, health SIBs are unlikely to provide sufficient financial returns given their financial risk to attract mainstream investors, so may be better suited to investors who are prepared to accept lower financial returns blended with particular health impact returns.If SIBs are to become a sustainable financing mechanism, investors’ concerns need addressing. This paper explores the conditions required for SIBs to attract capital to make planning and development worthwhile. Attracting a wide base of capital may not be feasible because many investors still seek at least market rate returns, which is unlikely for many SIBs. Commissioners could instead target selected investors who are prepared to accept lower financial returns at a higher risk blended with impact returns. This could include maximizing potential impact returns and reducing exposure to financial risk.

Suggested Citation

  • Elaine de Gruyter & Dennis Petrie & Nicole Black & Philip Gharghori, 2020. "Attracting investors for public health programmes with Social Impact Bonds," Public Money & Management, Taylor & Francis Journals, vol. 40(3), pages 225-236, April.
  • Handle: RePEc:taf:pubmmg:v:40:y:2020:i:3:p:225-236
    DOI: 10.1080/09540962.2020.1714312
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09540962.2020.1714312
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:pubmmg:v:40:y:2020:i:3:p:225-236. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RPMM20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.