ELI5 Development Impact Bonds

It is a variation of the Social Impact Bonds model explained in Social Impact Bonds - ELI5

Development Impact Bonds (DIBs) are outcomes-based funding structures for the delivery of public services in low- and middle-income countries.

The funding comes from donors (private entities) or government of host country - or both.

Much like Social Impact Bonds, investors provide financing and only receive a return if pre-agreed outcomes are achieved.


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ELI5 is short for “Explain Like I’m 5”. Made popular on Reddit, it is a request for a simple explanation to a complicated question or problem.