With a €200mn investment capacity, Hémisphere has enough resources to be able to acquire real estate representing 10,000 emergency accommodation units over the next two years. It forms part of the trends regarding social impact bonds (SIBs), which enable a private stakeholder to finance a social programme with the latter’s remuneration conditional on social targets being met. Via this scheme, the State is saving 40% on the cost of overnight hotel stays. Over and above the budget implications, the aim is also about keeping more effective tabs on the quality of accommodation and assistance services.
Public and private stakeholders alike are working closely together for this scheme:
- the State is defining the specifications guiding the services that are being entrusted to a social operator;
- Adoma, the State-selected social operator, is responsible for accommodation and social assistance;
- six long-term institutional investors are financing the project through an investment approach aimed at having a social impact (€100mn commitment);
- the Council of Europe Development Bank (CEB) is supplementing the fund’s resources with up to €100mn in additional funding;
- an independent auditor is assessing the extent to which the social targets – on which part of the investors’ remuneration depends – are met.
Lire le communiqué de presse