Splendid news as Holland joins the SIB revolution!
Rotterdam tackles youth unemployment through new financing arrangement with ABN AMRO and Start Foundation.
ABN AMRO and Start Foundation will invest 680,000 euros in the Rotterdam company Buzinezzclub.
This company helps 160 unemployed Rotterdam young people without basic qualifications to work or return to school, so that they flow faster than average from the distribution .
The Rotterdam municipality pays the investors back based on the number of benefits that this is saved.
This is done through the new funding Social Impact Bond. This is a contract in which private investors to invest in the approach to a social problem that cost the government a lot of money. The government pays them back with the money they save and thus a possible return.
In this Social Impact Bond yields can reach up to 12 % on an annual basis . The faster the flow of young people, the higher the return.
In Britain and the United States is already in full experience of this investment vehicle .
On Thursday, December 19 , Gerrit Zalm launched (Chairman of ABN AMRO), Marco Florijn (Alderman work, income, health care and government), Anton Westerlaken (Start Foundation President) and Leo van Loon (Founder Buzinezzclub) the first Social Impact Bond in the Netherlands.