Impact Bonds - ELI5

First of all, know that Impact Bonds have nothing to do with traditional “bonds” (fix interest financial instruments).

By Impact Bonds it is meant anything under that category:

  • Social Impact Bonds
  • Development Impact Bonds

Impact Bonds are generally in the sustainable development space: social, environmental & economical development.

The definition of the impact bonds (social vs development) depends on who pays the outcome:

  • Dev Impact Bonds —> development partners like philanthropic foundations are taking part
  • Social Impact Bonds —> generally financed by governments

Read more about each term:

Feeling lost? you might want to start reading here Finance & Token Engineering category - START HERE

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