Social Impact Bond Implementation: Business Alliance with UK SIB Fund Management Company
- Industrial Sectors
A social impact bond (SIB) is a novel public-private partnership system that aims to solve social issues by implementing new solutions using private-sector knowhow and capital to address the social issues faced by central and local governments. In the UK, where SIBs originated, this system is being used mainly to improve the lifestyle habits of adults to reduce future medical costs; provide mental health care and job support to young people who are not educated, employed or trained; offer job support to the homeless; and endow programs for the prevention of recidivism. It is used to carry out various types of prevention programs that aim to solve social issues and reduce administrative costs in the future.
In November 2019, DBJ signed an alliance agreement with Bridges Fund Management Limited (headquarters: UK; "Bridges"). Bridges is the largest fund management company in the UK and specializes in social impact investments with the goal of achieving economic returns and creating social impact. In addition, DBJ is investing in the SIB fund that Bridges has launched.
Collaborating with Bridges, DBJ aims to conduct surveys and research of successful social impact cases outside of Japan and to implement financing for the development of schemes and individual projects that suit the market environment in Japan.