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Beccar Varela 

October, 2020 - Buenos Aires, Argentina



First Argentine Social Impact Bond winner at the “Enviromental Finance Awards Impact 2020”.


On September 14th, 2020, the renowned publication Environmental Finance, focused on sustainable practices, awarded Argentina’s first Social Impact Bond (SIB) in the category “Investment of the year / Education”, at the “Environmental Finance Awards Impact 2020”, an annual awards ceremony to globally recognize the work of impact investors, as well as highlight best sustainable practices.

At the end of 2018, the Government of the City of Buenos Aires (GCBA), supported by the IDB Lab, Social Finance UK, Acrux Partners, and Fundación Alimentaris, who provided technical advice on the design, structuring, fundraising, and mobilization of the SIB and facilitated all stakeholders’ coordination, launched the first Payment Contract for Results in Argentina with the aim of financing the program “Project your future” (in Spanish, “Proyectá tu futuro”). In December 2018, the contract was awarded to a group of social investors, consisting of Banco Ciudad, Banco Galicia, IRSA, Organización Román, and a private investor. The IDB Lab granted them an additional loan to complement their capital. These institutions were counseled by Beccar Varela.

SIBs are contracts between the state (or other private or public payers for results) and private investors that seek to finance projects that provide solutions to social problems, implemented by expert organizations.

“Project your future” is a program that contributes to the employment of 1,000 young people aged between 17 and 24 suffering situations of extreme vulnerability. It is carried out by AMIA, and the Forge, Pescar and Reciduca foundations, all of them expert organizations coordinated by Acrux Partners. The program was tailored to meet participants’ individual needs, including interventions such as the development and strengthening of technical and socio-emotional skills, and mentoring and support during the job search, initial job placement, and the first six months in the job.

Despite the adverse macroeconomic and political conditions that Argentina experienced throughout 2019 and 2020, and the impact of the government measures in response to the health crisis, the success of the program in achieving its objectives has allowed it to continue with the development of the project, opening the door to future similar programs replicating their learning both in the country and in the region.

SIB’s are emerging funding and contracting mechanisms in developing countries and probably the first of future similar legal structures, which are expected to evolve from the employability learning gained from this first experience.

Social Impact Bonds. The mechanism emerged in the United Kingdom in 2010 with the name Social Impact Bond, where bond refers to the link that arises between different actors working towards the same objective. It is currently being used to address social problems in more than 25 countries.

Environmental-Finance.com is an online news and analysis service established in 1999 to report on sustainable investment, green finance and the people and companies active in environmental markets.
Website: https://www.environmental-finance.com/


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