Sticking Together Social Impact Bond
The Sticking Together Social Impact Bond is Australia’s first SIB addressing youth employment.
The Sticking Together SIB offers investors the opportunity to generate a financial return whilst helping young people who are experiencing disadvantage find jobs and keep them.
The Sticking Together Project is an intensive 60-week coaching program that supports young people to get ready for work and, importantly, develop life skills that enable them to stick with their jobs.
The Sticking Together Project will be delivered by SYC, a highly experienced non-profit service provider that has delivered employment, training, housing and wellbeing services to young people for 60 years. SYC developed the Sticking Together Project and has piloted it in three States.
The program will work with over 800 young people aged 18 to 24, who are currently unemployed and have high barriers to employment, such as a disability or mental health challenges, a criminal conviction or lack of a permanent home. The program will find ways to improve each young person’s connectedness, motivation and personal self-worth through the lens of home, health and relationships, and will also provide support to their employers.
This innovative transaction is expected to generate a positive impact through the participants’ reduced reliance on welfare and a reduction in utilisation of other government services, along with improved wellbeing and greater lifetime earnings for young people themselves.
The Sticking Together SIB structure
Key features
- Investor returns are linked to the success of the Sticking Together Project in improving the amount of time program participants spend in productive activities, particularly in paid employment
- 4.5 year bond term (dependent upon Financial Close)
- Target performance scenario return of 7% p.a. (note that this is an objective only)
- Fixed coupons of 3% p.a. for first two years
- Three variable coupons dependent upon program outcomes
- 50% capital protection in underperform scenarios
Invest
Please note the Sticking Together SIB is now closed for investment. For further details please refer to the following documents:
- Sticking Together Information Memorandum (non-offer version)
- Sticking Together SIB Deed Poll and Purchase Deed
Investor updates
- November 2019 investor update
- April 2019 investor update
