Hemisphere Social Bond

May 10, 2022 | Demonstration

Demonstration NameHemisphere Social Bond
Demonstration DescriptionThe Hémisphère fund purchased around 100 low-cost hotels across France (to relieve pressure on the Paris and Greater Paris region) that were let to Adoma, a specialist in emergency accommodation and social integration through housing. Adoma is renovating and the hotels into accommodation centres – work that will be financed by Hémisphère and a €100 million loan from the CEB.

How does the social impact fund work?
The Hémisphère initiative is based on a social impact investment scheme that sees private sector investors funding social programmes that link part of the remuneration to improved social outcomes, including the number of people who have been placed in permanent accommodation or successfully transitioned from the programme, or the proportion of children attending school. These objectives are measured each year by an independent auditor.

Benefits of the social impact fund include:
• Enabling central government to save 40% on its accommodation budget
• Providing more effective control of the quality of accommodation and social support being offered
• Delivering a secure financial investment for investors: they receive a secured yield based on the rents from Adoma, and a variable return based on social outcomes
• Creating a flexible and easy-to-replicate solution that can be used in other areas of social action, particularly projects that require personalised follow-up services, or that have a major impact on quality of life, such as social housing.

Based on innovative finance, social impact funds and bonds enable the private sector to invest for the public good, benefiting the most disadvantaged.

This is the largest initiative to use this type of funding instrument. It demands close cooperation between public and private stakeholders. Key stakeholders include:
• Central government draws up the technical specifications of the service offering to be entrusted to a social services operator
• Adoma, the operator selected by the government, is in charge of providing emergency accommodation and social support
• Six long-term institutional investors finance the project as part of a social impact investment (they commit to invest €100 million in equity)
• The CEB extends a loan of €100 million to Hémisphère
• An independent assessor measures the social outcomes, which determine part of the investors’ returns.
Hémisphère is a social impact investment fund managed by AMPERE Gestion, which brings together major institutional investors: – France Aviva – BNP Paribas Cardif – Caisse des Dépôts et Consignations – CNP Assurances – MAIF – PRO BTP
Demonstration CountryFrance
Demonsration Referencehttp://www.groupesni.fr/fileadmin/medias/LeGroupeSni/cp/Communique_de_presse_premier_closing_Hemisphere___30_mai2017.pdf
Does the demonstration include any of these asset classes?Social Housing

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