Out of the box: blending capital solutions


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Greg Peel, CEO, Community Sector Banking delivered this presentation at the 2013 Social Finance Forum in Sydney/Australia. The two-day event reviewed the benefits of social service bonds, government opportunity and policy that supports the social finance market, the investor appetite for social impact bonds, calculating risk, measuring outcomes, as well as numerous case studies and international expertise.

In 2013 Informa will host the inaugural Social Finance Summit in the UK. The event will be held on the 12th and 13th November at the Hilton London West End. For more information on the outstanding speaker line-up, please visit www.socialfinancesummit.com

Published in: Economy & Finance, Business
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Out of the box: blending capital solutions

  1. 1. Social Finance Forum: August 8 Greg Peel out of the box: blending capital solutions
  2. 2. demand for social finance is increasing • not-for-profit sector - huge & diverse • 600,000 organisations • many different tasks and aims • capacity of not-for-profit providers of social impact • subsectors of the not-for-profit sector • government, community and business building society
  3. 3. supply • emergence of impact investing • initiatives around the world • Australian government programs
  4. 4. linking supply & demand • developing the mechanisms • managing risk and yield • overseas examples • the bond market • social impact bonds • housing bonds
  5. 5. phanthropic / donations grants & gov’t contracts gov’t support & guarantees gov’t / SEDIF / CDFI (SEFA, Foresters, SVA) bank lending: -CSB - other Banks community bank reinvest strategy crowd funding -social impact bonds - housing bonds corporate impact support (risk mitigation) fixed interest impact investing (SIDA) equity quasi / equity impact investing Social return on investment social finance and capital markets United Kingdom CDFI tax incentive social infrastructure fund housing bonds social impact bonds big society capital emerging marketsavailable
  6. 6. blending capital solutions • normalising risk and yield • new products that are attractive to investors
  7. 7. social infrastructure funding requirements 100% 0% bank debt risk appetite blended capital solution • grant / philanthropy • credit enhancement • crowd funding • government support social infrastructure project funding requirements
  8. 8. examples of blended structures shared equity, home purchase plans social enterprise funding
  9. 9. microfinance: in-roads individual finance Bendigo Bank Community Sector Banking risk mitigation risk mitigation intro / management
  10. 10. corporate contract Aboriginal owned enterprise funding bank debt income streams risk mitigation affordable finance amount corporate risk mitigation
  11. 11. blending capital solutions • normalising risk and yield • new products that are attractive to investors
  12. 12. our story • 2002 - launched as joint venture of Bendigo Bank & Community 21 consortium of 20 not-for-profit organisations • 2013 - eleventh anniversary, 7,000 not-for- profit customers ranging from small local community groups to national charities
  13. 13. our not-for-profit shareholders
  14. 14. connecting digitally /communitysectorbanking /csbanking /csbanking keep ‘in the loop’ by visiting us at www.communitysectorbanking.com.au