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:
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