Arc Social Impact Bond

The Arc Social Impact Bond aims to break the cycle of reoffending and homelessness in Victoria

The Arc Social Impact Bond (SIB) offers investors the opportunity to generate a financial return whilst providing the base from which disadvantaged people leaving prison can create a new narrative arc for their life, and a new sense of self, and move away from patterns of offending.

The Arc Program will provide at least three months of planning and rapport-building prior to release from prison, two years of innovative, intensive case management support post-release and, crucially, access to stable housing. The Program draws heavily on local and international evidence.

The Program will be delivered by Vacro, Victoria’s oldest and only specialised justice reintegration service. Vacro operates across every region in Victoria and delivers a range of pre-release and post-release reintegration supports to people leaving prison and their families. With 150 years’ experience, Vacro has a deep understanding of the interaction between criminal justice system involvement and the multiple levers of disadvantage, of which homelessness is a primary contributor.

The Arc Program will be delivered in partnership with a number of experienced community housing providers, including Housing Choices Australia, BeyondHousing, Haven Home Safe, Women’s Property Initiatives and Uniting.

It is anticipated that approximately 423 men and women will be enrolled in the Arc Program over a 3.25 year period across metropolitan and regional Victoria. Each of these individuals will have served a sentence of at least three months and will be assessed by Corrections Victoria as being at risk of homelessness.

 

The Arc SIB structure

Key features

  • Investor returns are linked to the effectiveness of the Arc Program in reducing participants’ utilisation of justice, health and homelessness services.
  • 6.75 year bond term (dependent upon Financial Close)
  • Target performance scenario return of 8% p.a. (note that this is an objective only)
  • Fixed coupons of 3% p.a. for first 3 years
  • Performance coupons in years 4-7 which are dependent upon program outcomes
  • >50% capital protection in worst-case scenario; maximum return 12% p.a.

Invest

For further details please refer to the following documents: 

Further Investor information can be found on this page.