Bonds issued by charities, housing associations and universities
Produced in partnership with Nathan Menon of Reed Smith and Ranajoy Basu of Reed Smith
Bonds issued by charities, housing associations and universities

The following Banking & Finance practice note Produced in partnership with Nathan Menon of Reed Smith and Ranajoy Basu of Reed Smith provides comprehensive and up to date legal information covering:

  • Bonds issued by charities, housing associations and universities
  • Social Impact Bonds (SIBs) and Development Impact Bonds (DIBs)
  • What is a SIB?
  • Popularity of SIBs
  • Key parties to the transaction
  • Key transaction documents
  • Housing Associations
  • Structuring and securitising social housing
  • Issues with social housing
  • Retail bonds in the social housing context
  • More...

Over recent years, there has been an increase in the types of organisations which have sought to enter the capital markets. Capital markets transactions used to be the preserve of banks, financial institutions and commercial companies. However, more recently, other organisations have now entered this space. The growth and diversity of new financial products have shown that collaboration between public, private and voluntary sectors can be achieved through working together on capital market transactions.

Social Impact Bonds (SIBs) and Development Impact Bonds (DIBs)

Solving deep-rooted social problems has long been a major issue for governments and charities alike. Entrenched social issues (such as children in care, homelessness, youth employment and long term health issues) can occur where governments are limited in their ability to act or where governments have struggled to address such problems in the past. Traditional models have failed to deliver the results needed to make a significant impact on these issues. SIBs attempt to address such issues by bringing together the public, private and voluntary sectors, with innovation and a results-driven focus. .

What is a SIB?

SIBs are a commissioning tool to help impact driven providers deliver ‘outcome contracts’ and raise funding for services which is conditional on achieving those results. For example, SIBs in the UK have been linked to preventing teenagers becoming ‘NEETs’ (not in education, employment or training) and SIBs in

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