The Dutch Ministry of Security and Justice, ABN AMRO, Start Foundation and Stichting Oranje Fonds have joined forces to help ex-convicts find a job. The goal is to reduce relapses and benefits applications. The parties are using a Social Impact Bond, an innovative financing instrument, and the total investment comes to more than 1.2 million euros, with ABN AMRO investing 426,000 euros.
A Social Impact Bond is a contract under which private investors invest money to achieve social outcomes. Whether investors recoup their investment and receive returns depends on the success of the project. At present, there are currently five Social Impact Bonds active in the Netherlands, three of which have been financed by ABN AMRO.
Gerrit Zalm, Chairman of the ABN AMRO Managing Board: 'I am proud that we have launched our third Social Impact Bond. We are keen to use our expertise to achieve social goals. We will continue to use this financing instrument to make a difference in various social challenges. This is in line with our role of sustainable financer.’