Development Bank of Japan Inc. (DBJ) has decided to provide social impact bond (SIB)*1 funding to a learning support project to reduce recidivism in juvenile training schools--a project for which Kumon Institute of Education Co. Ltd.（Kumon; CEO Hidenori Ikegami）and other service providers were commissioned by the Ministry of Justice of Japan. It is the first SIB project under the direct control of the Japanese government, and the first project in the field of recidivism prevention in Japan.
Kumon is an education service company providing the Kumon method of learning to 3.72 million learners in more than 50 countries all over the world. The Kumon method has been used in juvenile training schools since 1977, with four using it as of March 2021. Kumon has focused on the possibility of using SIBs from early on, having participated in an SIB research project conducted by the Ministry of Economy in 2015, and now they are working on Pay for Success (PFS) projects with local governments.
In this project, Kumon will plan learning-support programs for the target students in juvenile training schools and provide continuous support after discharge, aiming to reduce recidivism. It will be conducted in collaboration with Kizuki Co. Ltd. (headquarters: Shibuya-ku, Tokyo; CEO: Yusuke Yasuda) and association Mofumofu Net (headquarters: Osaka-shi, Osaka; CEO: Junko Fujioka), service providers that have much experience addressing juvenile delinquency. DBJ funding to the project through its Special Investment Operations*2 is expected to contribute to growth of the SIB market in Japan.
DBJ will continue to not only contribute to the revitalization of Japan through PFS and SIBs, leveraging its diverse project funding and other knowledge, but also support development of solutions to social issues faced in regions throughout Japan.
*1 Social impact bond: A contract whereby a public sector or governing authority pays for better social outcomes in certain areas and passes on part of the savings achieved to investors. It is positioned as one of the public-private partnership methods that combines the utilization of private funds.
*2 Special Investment Operations are designed to encourage private-sector institutions to supply growth capital. The supply of growth capital is implemented intensively but temporarily from the perspective of strengthening Japanese companies' competitiveness and revitalizing local communities.
Inquiries:
Structured Finance Department
+81-3-3244-1590
Business Planning and Coordination Department, Innovation Promotion Office
+81-3-6311-5048