The British International Investment (BII) recently announced a commitment of almost £8 million to the SDG Outcomes Fund. As the UK’s impact investor and development finance institution (DFI) and impact investor, the BII will serve alongside the United States International Development Finance Corporation (DFC) as anchor investors.
The two DFIs will support the initial fund for development impact bonds in both lower and middle-income nations globally including South Asia and Africa. UK consumers and companies interested in funding initiatives overseas often look for expert and independent financial advice in Chester, London, and other major cities. As IFAs, wealth managers are often relied on for an unbiased assessment of investment opportunities abroad.
Set up as a partnership, the initiative will feature UBS Optimus Foundation as the lead investor, while Bridges Outcomes Partnerships, a not-for-profit specialist entity, will serve as fund manager. The SDG outcomes Fund employs an innovative finance structure which is blended to make investments in impact bonds and other outcomes-based contracts established to support the United Nations Sustainable Development Goals.
It specifically targets vital areas like healthcare, employment, education and child protection, as well as environmental outcomes focused on improving the livelihoods and lives of some of the planet’s most vulnerable populations.
While it is a leading impact investor, this new venture is BII’s first ever investment activity in development impact bonds to date. The fund will zero in on some of the most vulnerable communities and challenging sectors, as well as help advance financing tools that can accelerate the progress of development challenges which Africa is now facing.