Impact bonds enter main market with Stockholm diabetes deal

Diabetes blood sugar test health from Adobe 18Jun20 575x375
By Frank Jackman, Jon Hay
18 Jun 2020

Region Stockholm brought social impact bonds into the mainstream European capital markets this week, with a transaction aimed at preventing people from developing diabetes. With healthcare financing top of the agenda in capital markets because of Covid-19, the deal raises the prospect that other issuers could turn to outcome-based financing. Frank Jackman and Jon Hay report.

Social impact bonds were invented in 2010, with a deal in Peterborough, England, to reduce reoffending among ex-prisoners. Since then, they have been used hundreds of times to finance a wide variety of social and environmental projects.

These deals are typically small and bespoke. Mainstream capital markets issuers ...

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