There's a new bond in town!
On the eve of London's G8 social impact investment summit, an international group of experts set forward a new financing instrument at an event hosted at the Standard Chartered City of London office: the Development Impact Bond (DIB).
Based on the structure of the UK Social Impact Bond, money from investors is channeled to local public and private service providers. If independently verified evidence shows that intended results have been achieved, the government and donors repay the investors their principal plus a financial return linked to performance.
Pioneers Post went along to the event, which marked the beginning of a public consultation, to find out how DIBs might impact on the international development landscape alongside the arsenal of instruments that are working to channel the private sector towards adressing global challenges.