ABN AMRO’s Social Impact Fund, Buzinezzclub and Start Foundation have committed to invest € 1.7 million to help young people in the Dutch city of Eindhoven find a job. These three parties will use an innovative financing instrument for this purpose: a Social Impact Bond (SIB). This will be the first Social Impact Bond launched in cooperation with the municipality of Eindhoven.
A Social Impact Bond (SIB) is a contract under which private investors commit to contribute to solving a social problem. Whether investors will recoup their investment and receive returns depends on the success of the project.
Read more in the press release issued by the municipality of Eindhoven (in Dutch only).
Six SIBs are active in the Netherlands at present; ABN AMRO has invested in four of them. The goal of three of these SIBs is to find employment for young people – in Rotterdam, Utrecht and now also in Eindhoven. The first results in Rotterdam are very encouraging.