Social Impact Bonds

Social Impact Bond Utrecht
Social Impact Bond Utrecht

Social Impact Bonds oktober 20145
Download the Social Impact Bonds Report​ (PDF 4 MB)

Engineer and trainee working
Blog Ruben Koekoek

ABN AMRO uses its financial expertise and network to support innovative approaches to sustainability. The bank is currently examining a range of innovative financial products and services to determine whether they are interesting from a business perspective and what social benefits they offer. These are experiments. If they are successful, we aim to market them to our customers. Just another way in which ABN AMRO contributes to a better world. To date, this approach has delivered a number of new products and services, including the Social Impact Bond, financed by ABN AMRO Social Impact Fund.

Investing in social impact

Early in 2013, ABN AMRO introduced the Social Impact Fund in the Netherlands, as a way to gain knowledge of the social impact market and contribute to its development. We have invested amounts ranging from 250,000 to 1.5 million euros in fifteen companies, making up a total investment of 10 million euros. These are social enterprises whose business models have the potential to really contribute to a better world, while also generating financial returns. They are involved in activities like renewable energy, regeneration of ecosystems, healthcare and smart solutions to Third World problems.

Social Impact Bond

The Social Impact Bond is an innovative product allowing government to work with private investors to finance social projects carried out by social entrepreneurs. In Rotterdam the bond is linked to an investment by ABN AMRO Social Impact Fund and Start Foundation in an initiative called Buzinezzclub. In Utrecht the bond is linked to an investment by ABN AMRO Social Impact Fund and the Oranje Fonds.

Unemployed youth are supported in starting a business, finding a job or going back to school. The private investors provide up-front funding, and as such carry the risk of the project. If the entrepreneurs achieve the social objectives, the government saves money. Part of that money is used to pay back to the investors the amount they invested, plus interest. The entrepreneurs, who bear part of the risk, are also paid out of the savings on benefits. They earn a profit and can grow their business.

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