Newpin Social Benefit Bond
The Newpin Social Benefit Bond (SBB) was a first in Australia.
The Newpin SBB represents the coming together of a diverse group of people united in the goal of helping some of the most vulnerable families in our community.
This was the first time in Australia this new approach to tackling some of society’s most entrenched problems was tried.
The NSW Government worked collaboratively with UnitingCare Burnside and SVA to agree a ‘payment by outcomes’ structure under which taxpayers effectively share the financial benefits flowing from the social impact of the Newpin program.
Outcome payments by their nature are received after the work has been done (and costs incurred), and may never be received at all in the worst case scenario that the intervention has no impact. Because of this, UnitingCare Burnside needed working capital to be able to deliver the Newpin program, and investor partners willing to share in the downside risk. SVA developed a structure that fairly balanced the risks and rewards to investors and UnitingCare, and was able to successfully raise the $7m required in a short period of time.
We believe that the Newpin investor group is the largest and most diverse of any SIB around the world, reflecting a high level of confidence in UnitingCare Burnside’s ability to make a lasting difference to the lives of the families they support.
Today, UnitingCare has security of funding for the Newpin program for years to come, the Government is benefitting from both a stronger society and a reduction in expenditure, and investors are receiving a social return and a financial return on their investment.
- All family restorations are independently approved by the NSW Children’s Court.
- Investor returns are based on the proportion of children participating in the Newpin program that are restored to their families.
- Minimum 5% interest first 3 years
- Principal protection 75% Yrs 1-3, 50% Yrs 4-7
- Early termination right for poor performance from Yr 3
Please note that the Newpin SIB is now closed for investment. For further details please refer to the Newpin SBB Information Memorandum (PDF, 2MB)
SVA prepares a report on the results of the Newpin SBB as at the end of June each year. Please download past reports for more information about the bond.
Newpin Annual Investor Report – 2020 (PDF, 3MB)
Newpin Annual Investor Report – 2019 (PDF, 942KB)
Newpin Annual Investor Report – 2018 (PDF, 616KB)
Newpin Annual Investor Report – 2017 (PDF, 527KB)
Newpin Annual Investor Report – 2016 (PDF, 438KB)
Newpin Annual Investor Report – 2015 (PDF, 629KB)
Newpin Annual Investor Report – 2014 (PDF, 435KB)
Further Investor information can be found on this page.
Newpin SBB maturation in the news
Australian Financial Review: Social impact bonds reunite children with their parents
Pro Bono Australia: Australia’s first social impact bond delivers for families and investors