Deal: UNIQUE SOCIAL IMPACT FINANCIAL TOOL FOR STEM (US)
DescriptionThis Institute is a US intermediary specializing in the design and finance of Social Impact Bonds. This one for STEM (Science, Technology, Engineering, and Mathematics) is a 3-year pilot and $2.4m project that will take place during the Summer of 2016 in the form of an overnight summer academy at the University of Maryland, with an on-going Saturday school component throughout the school year. The program will have 80 student beneficiaries. Investments will take the form of loans (Minimum: $51,003 = $17,001 annually), with 5% interest (flat, or compounded annually/semi-annually), plus the initial investment, to be returned to investors upon a showing of successful outcomes (1 - staying out of criminal justice system, 2 - staying out of special education, 3 - ensuring students matriculate to next grade level). Investments are to be paid back on a per-capita basis (for each individual student success, investor will receive an outcome payment of $51,553.15) with outcomes to be determined by independent evaluators at the end of the 3-year pilot. Funds are to be handled and distributed by our independent financial administrator. The term sheet has also been drafted by a US University Law.
AssetsFinancial market product, Foundation & Charity, Loan