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£4.5m Social Impact Bond for Merseyside

Triodos Bank and GMCP (Greater Merseyside Connexions Partnership) win £4.5m DWP Innovation Fund payment by results contract to help support young people in Merseyside who may be unemployed or at risk of unemployment.

20-01-2012 | Triodos Bank and Greater Merseyside Connexions Partnership (GMCP) are working together to deliver an innovative three year programme called "New Horizons" targeted at some of the most vulnerable young people in the Merseyside area.  The New Horizons programme aims to improve educational, training and ultimately employment outcomes for 3,900 young people, many of whom will be young offenders, have learning disabilities, or be in or leaving care The programme will use a blend of interventions including one-to-one coaching aimed at improving 'mental toughness' and resilience in individuals so that they can self-sustain their own development and progression into suitable employment.

The Innovation Fund is a newly launched DWP initiative aimed at encouraging social service delivery organisations, financial intermediaries and private sector investors to work together to design and finance programmes which can help improve employment outcomes for the most vulnerable young people in society. The DWP acts as main contractor and guarantor of a payment by results contract. Unlike typical social service delivery, the funding is provided at risk by private sector social investors, who only achieve a financial return if pre-agreed educational, training and employment outcomes are met.

Triodos Bank's corporate finance team acted as lead adviser on the deal and in partnership with GMCP raised £2 million of funding for the programme in the form of a Social Impact Bond from a syndicate of leading UK social investors, including the Big Society Investment Fund. GMCP, who are a leading and longstanding social delivery organisation in Merseyside designed the New Horizons concept and will be in charge of delivering the programme on the ground in partnership with a small group of other local service providers. Triodos will retain a role in the financial management of the three year scheme on behalf of investors.

Minister for Employment, Chris Grayling commented, "The first round of Innovation Fund contracts we have awarded should offer a win-win solution, whereby private sector funding will allow us to test out innovative social programmes which are targeted at the most vulnerable. We're delighted to see ethical financiers like Triodos working in partnership with credible delivery organisations like GMCP to have the greatest impact on communities in Merseyside".

Dan Hird, Head of Corporate Finance at Triodos commented, "This has been a groundbreaking and well organised initiative by DWP as the scheme offers good value for money for the taxpayer because Government will only pay out if positive outcomes are actually achieved. It has been great for us to work with a highly professional service delivery partner in GMCP who can significantly help to transform the lives of thousands of young people. There is a genuine opportunity now for Social Impact Bonds to become more widely used financial instruments in addressing social problems at a meaningful scale".

Kieran Gordon, CEO of GMCP added, "We welcome this government support for social investment to tackle the growing problem of youth unemployment. Triodos Bank and GMCP have worked hard to attract substantial private investment from a range of investors to enable us to respond to the rising unemployment amongst local young people. This will bring new investment capital into Greater Merseyside which would not otherwise have come to the area. We are delighted to work with a range of investors who pledged their support to this programme".

Lead advisory:         

Triodos Corporate Finance: Dan Hird

Legal advisor:          

Burges Salmon: Chris Godfrey

Notes to editors:

Triodos Corporate Finance works exclusively with sustainable businesses and has a long track record of advising businesses on raising capital through private placements and retail offers.  The growth achievable from capital raisings helps businesses achieve the perfect balance between financial and ethical business objectives.  Triodos has an enviable database of ethical investors keen to invest in the growing sustainability sector. 

Over the past 12 months, Triodos Corporate Finance has raised over £25 million for businesses within the sustainability sector with investments from institutions, charitable foundations, private high net worth individuals and retail investors.  Through our Europe-wide reputation and credibility in the sustainability sector, Triodos has unmatched access to potential clients.

For further information, please contact:

Huw Thomas | 0117 980 9593 | huw.thomas@triodos.co.uk

About Triodos Bank:

Triodos Bank only finances enterprises which create social, environmental or cultural added-value.

Key sectors include organic food and farming, renewable energy, social housing and fair trade. Transparency is a core value: customers are informed about the bank's lending and can target their savings to particular areas of investment.

A range of personal savings accounts is offered, and full banking services are available for businesses and charities.

Triodos Bank is an independent bank founded in the Netherlands in 1980. Its principles and independence are protected through a special shareholding trust. The UK office opened in 1995 and is based in Bristol.

To find out more about Triodos Bank's range of banking services, visit www.triodos.co.uk or call 0800 008 720. 

Corporate Finance Team

Dan Hird, Finance Director

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The Colour of Money

Customer magazine - Spring/Summer 2018

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In this issue: Annual Meeting | Triodos Crowdfunding | Community Ownership | Bruce Parry | A view from Birdgirl | Thriving Places | Mark Rylance | Thrive Renewables | Vitsoe | Whiteley Village

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