Following last week’s successful launch of Australia’s first $300 million green semi government bond issue, the Victorian government is said to be looking at launching an issue of social impact bonds.
NSW pioneered the concept of social impact bonds in Australia with its launch in 2014 of a $7 million programme aimed at reducing the number of children in foster care. The programme is considered to be very successful in both achieving its desired outcome and generating returns to investors.
The Victorian initiative will be the state’s first in the social bond space and is said to be targeted towards programmes that assist young Victorians to escape alcohol and drug addiction.
The green bond initiative was fully subscribed in 24 hours and it is hoped that the social bond initiative will go the same way. A successful programme would see a partnership between investors and government agencies providing benefits for each party.