Foyer Central SIB
The Foyer Central Social Impact Bond will support young people at risk of homelessness
The Foyer Central Social Impact Bond (SIB) offers investors the opportunity to generate a financial return whilst helping young people who are at risk of or experiencing homelessness to lead fulfilling lives and transition to independence.
Foyer Central is an integrated learning and accommodation centre that will support young people who have been in of out-of-home care on the path to independence. The Program will build their capacity to access resources and opportunities, connect with education, training and employment, and make positive decisions.
The Foyer Central Program will be delivered by Uniting and St George Community Housing, drawing on their collective experience supporting vulnerable young people and providing social and affordable housing. The Foyer Central Program is based on a model of support which has been successfully deployed both across Australia and globally.
The Program will operate in purpose-built accommodation located in Chippendale, close to the Sydney CBD, universities and training centres. It is anticipated that approximately 272 young people will be enrolled into the Program.
The Foyer Central SIB will be underpinned by the close partnership between Uniting, NSW Government and SVA formed over the seven-year term of Newpin SBB.
This innovative transaction is expected to generate a positive social impact by equipping young people with the tools they need to succeed, improving wellbeing and lifetime earning potential, while reducing reliance on welfare and other government services.
The Foyer Central SIB structure
Key features
- Investor returns are linked to the effectiveness of the Foyer Central Program in supporting young people to achieve successful outcomes, which are determined by key indicators of their independence
- A young person has a successful outcome if they maintain employment, education and/or independent housing over an extended period after graduating from Foyer Central, and do not record a conviction, live in social housing or have a child placed into out-of-home care.
- 9 year bond term (dependent upon timing of Financial Close)
- Target performance scenario return of 6% p.a. (note that this is an objective only)
- Fixed coupons of 2% p.a. for first 3 years
- Performance coupons in years 4-9 which are dependent upon program outcomes
- 55% capital protection in worst-case scenario; maximum return 10% p.a.
Invest
For further details please refer to the following documents:
- Foyer Central SIB Information Memorandum (PDF, 9MB)
- Foyer Central SIB Deed Poll and Purchase Deed (PDF, 1MB)
Further Investor information can be found on this page.
Investor updates
Hero image: Young residents standing outside Foyer Oxford, WA. Photo by Matt Galligan.
Click here to explore the Foyer Central website.
