European First: Individuals can generate financial returns through influential bonds while solving social problems

European First: Individuals can generate financial returns through influential bonds while solving social problems

After the scaling-up convertible loan, Oneplanetcrowd is once again introducing a new financing tool: the Impact Bond. Oneplanetcrowd is the first European finance platform Enables private investors to invest in a fall prevention program through impact bonds. The Stevig Standing Program aims to reduce falls by 28% among 2,500 seniors.

Investors can invest in via Oneplanetcrowd starting Thursday, July 21 Health Impact Bonds “permanent company”. Professional investors have been using impact bonds to combat social problems in countries like the Netherlands, France, and the UK for some time now, and they’re making good returns. As Europe’s first funding platform, Oneplanetcrowd now also allows private investors to invest in a social program with an impact bond.

So far, only professional investors such as ABN AMRO, Rabobank and Oranje Fonds have invested in impact bonds in the Netherlands. Martin de Jong of Oneplanetcrowd: “I am very proud of this innovation. Oneplanetcrowd is the first of its kind in Europe: private investors can now share in the financial and social benefits of the Fall Prevention Program. They are doing it together – and on exactly the same terms – with a French bank He has experience investing in impact bonds.

What is a health impact bond?

A health impact bond is a financing instrument in which (influencer) investors provide capital to a provider dealing with a social problem; In this case with a program for the elderly that focuses on fall prevention. The score motive (often the local government or the (health) insurance company) – has previously committed itself to repaying the investment to the investor, including the pre-agreed (maximum) return, when the agreed results are achieved.

About the permanent company

Each year, nearly 100,000 older adults end up in the emergency room after a fall. More than 3,500 of them died. A total investment of €1.55 million, of which €775,000 (50%) is funded by private investors through Oneplanetcrowd, will enable a five-year, three-month preventive program for 2,500 participating seniors in seven municipalities in North Limburg. The program covers the entire gamut: from identification, screening and referral to fall prevention courses, monitoring and aftercare. A consortium led by De Zorggroep is implementing the programme. Social Finance engages NL as an intermediary. The program was co-developed by Vilans and SafetyNL.

If the results of the prevention program are positive, it will lead to savings for health insurance companies, care offices (care for nursing homes) and municipalities (home care). If successful, municipalities and health insurance companies will save on higher health care costs with a prevention program. Municipalities pay with money saved[1]the Office of Health Care and the health insurance companies VGZ and CZ have returned investors.

Expected return

The return is directly dependent on the success of the program. During the program, Deloitte measures the number of lower falls among participating seniors. The two movement courses offered in this program have already been shown in the past to lead to fewer falls among participants. This means that the program has a significant social impact: less suffering and more independence for the older people involved. This social return translates into a financial return for investors. In the expected scenario, the investment will be repaid in a maximum of 6 to 8 years with a maximum total ROI (ROI) at 27.4% and expected internal rate of return (IRR) by 7.5%.

About Oneplanetcrowd – Together we finance the future

Oneplanetcrowd is the largest sustainable investment platform in the Netherlands. Entrepreneurs and energy projects that contribute to one or more of the Sustainable Development Goals can raise funding from more than 30,000 private investors affiliated with the platform. In this way, Oneplanetcrowd brings together innovative entrepreneurs and future-oriented investors to accelerate the transition to a sustainable economy.

[1] Venlo, Horst and de Maas, Bezel, Bell en Maas, Bergen, Jenep, Venray

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