An Impact Bond to Support Maternal and Newborn Health in India

Brookings Dec 24, 2018
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An Impact Bond to SupportMaternal and Newborn Health in India Giving Compass

Giving Compass’ Take:

• Emily Gustafsson-Wright and Izzy Boggild-Jones discuss the development impact bond that aims to improve maternal and neonatal mortality rates in the state of Rajasthan.

• What are the advantages of this model? Where else can this model be implemented? 

• Learn about Development Impact Bonds. 

On November 30th 2017, the world’s 5th development impact bond (DIB) launched at the Global Entrepreneurship Summit in India. This impact bond aims to improve maternal and neonatal mortality rates in the state of Rajasthan, which are among the highest in India.

The deal has the potential to reach up to 600,000 pregnant women with improved care during delivery and save the lives of up to 10,000 women and newborns over five years, tying the achievement of impact metrics to an $8 million outcome fund.

At the core of impact bonds is the principle of payment by results: investors provide service providers with upfront capital and outcome funders only pay them their principal plus a return if pre-agreed impact metrics are achieved.

The outcome metrics for this impact bond focus on the readiness for the NABH and FOGSI Manyata certifications (see Table 1). To achieve the full payment of $18,000 per facility, each facility will need to achieve at least 50 percent of total points available in each NABH chapter (see Box 1), and at 100 percent of least 11 of the 16 FOGSI standards (see Box 2).

Read the full article on the impact bond by Emily Gustafsson-Wright and Izzy Boggild-Jones at Brookings.

Impact Investing is a complex topic, and others found these selections from the Impact Giving archive from Giving Compass to be good resources.

  • This article is deemed a must-read by one or more of our expert collaborators.
    Click here for more.
    Impact Investing is Growing Quickly

    Giving Compass' Take: • A new report from the Global Impact Investing Network indicates that impact investing has roughly doubled in the past year, with money going to a wide range of causes.  • What does the impact investing sector need to grow further?  • Learn about the need for improved evidence for impact investing.  In just one year, the estimated value of the impact-investing sector has roughly doubled. There are now $228 billion in assets under management, according to a recent survey from the Global Impact Investing Network, which is up an estimated $114 billion since mid-2017. Placing bets that provide both a financial and social or environmental return is booming. Because GIIN is a nonprofit organization that works to increase the scale and effectiveness of impact investing, it asks major players in the field to volunteer their financials (so the numbers may be a little soft). But the number is skyrocketing. According to the report, investors pumped $35.5 billion into over 11,000 deals last year, and expect to boost their amount of investment another 8% over the course of 2018. “Whether they want to address challenges such as gender inequality, access to education, climate change, etc. – we’re seeing more individuals and organizations around the world beginning to recognize that they can harness the power of their investment capital to drive changes in investment decisions to address many of these pressing global challenges,” says GIIN’s CEO and co-founder Amit Bouri. Read the full article about impact investing growth by Ben Paynter at FastCompany.

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