Improving opportunities and entering into the world of work for young people that live in highly vulnerable situations are goals that, usually, are not considered in terms of the return in a financial investment. But this is exactly the goal that the Social Impact Vehicle (VIS) sets.
What is this all about? VIS are investment vehicles (just oriented to institutions, so far), that aimed attract capital to achieve not only economic results but also social results. Every proposition sets specifics goals that are focus to solve a problem. So, how much will levy who invested the money, rely on the achievement of the goals.
In Buenos Aires city, the first VIS has just been launched. It is focused in unemployment that affects young people between 17 and 24 years old and that live in the south area of the City. This VIS, valued at AR$40 million, is issued by the government of the City and the investors are: Bank of the City, Galicia Bank, IDB-Fomin, IRSA, Roman Organization, with the advice of Beccar Varela Law firm, Acrux Partners, Social Finance UK and Alimentaris Foundation.
What it is going to be paid to the funders, is going to depend on the achievement of 5 goals. These are going to be assessed as the work of a group of NGOs with 1000 young people from 5 districts of the City is developed. These young people already receive social help (Ciudadanía Porteña Plan or Asignación Universal por Hijo Plan). The amount to be paid differ according to the level of vulnerability. So, the yield is higher when they are mother or live in slums.
Finishing school is the first expected result. For those who start the program without finishing secondary school, getting their diploma will be the first step to take.
Accessing to a formal job either for a specified or unspecified period, is the second goal to be assessed to pay an amount per cápita to the investor. The third one is that the same job has to be maintained for at least 4 consecutive months. Looking even further, the fourth goal consist in being employed for 12 months in a period of 14 months (in this case, no necessarily by the same employer). This would allow higher profit to the investor. The fifth condition to the objective of the Vehicle, is expanding the market. This means to add more companies to the project in order to keep hiring young people trained by the Program.
Finishing school and employability are going to be promoted by this Program that is led by AMIA, Forge Foundation, Pescar Foundation and Reciduca Foundation.
The Program started last month and has an additional purpose: be the gateway to develop social impact investments, so this way financial returns will overcome the barrier from the wealth of who owns the capital to be inclusive.
Original version: https://www.lanacion.com.ar/2201511-un-bono-de-inversion-que-rinde-si-hay-mas-educacion-y-trabajo