Social Benefit Bond Raises $10 million to Support Family Preservation Service in New South Wales
4 October 2013
The Benevolent Society (TBA) in partnership with Westpac Institutional Bank (Westpac) and Commonwealth Bank of Australia have successfully closed its $10 million Social Benefit Bond (SBB) raising funds to establish The Resilient Families preservation service which opens next week.
The New South Wales Minister for Families and Community Services, Pru Goward, in June signed the contract for the funding mechanism for The Resilient Families service, to be delivered by Australia’s first charity, The Benevolent Society.
The Service which focuses on reducing the number of family breakdowns and children placed in the foster care system in New South Wales supports up to 400 families over five years.
As the first SBB in Australia to be arranged by two double A-rated Australian banks, it attracted strong institutional and philanthropic investor appetite with NRMA Motoring & Services, Australian Ethical Investments, Westpac Foundation and Commonwealth Bank of Australia taking cornerstone interest.
All three consortium members agreed this was a pleasing result that indicated strong interest and healthy beginnings of Australia’s social investment sector.
The five year bond, which has now closed, was structured with two tranches to meet the different risk and return profiles of various investor markets.
The senior tranche includes a $7.5 million capital protected component that takes into consideration the target return profiles of institutional investors. The return of between zero per cent per annum and 10 per cent per annum, is based on agreed performance outcomes which reflect the degree of relative improvement in preserving the family unit over five years.
The junior tranche of $2.5 million was taken up by charitable foundations and philanthropic family trusts.
At $10 million, The Benevolent Society bond is larger than the Newpin Social Benefit Bond which successfully raised $7 million back in June 2013
Resilient Families Service to open next week
The Resilient Families service draws on The Benevolent Society’s considerable experience in working with vulnerable children and families and aims to help struggling parents, who have come to the notice of NSW Family and Community Services, do all they can to improve the way their family functions and make their homes safer and more secure for their kids.
Resilient Families will provide intensive, in home practical and therapeutic support to families for up to 12 months, with an initial twelve week intensive period that includes 24/7 support. Families will receive ongoing support for up to a year on issues such as stable housing, parenting strategies, increasing safety and security for children, domestic violence and substance misuse.
Our experienced staff will also work with parents to develop skills to manage stress and conflict, understand their children’s developmental needs and tackle problems early before they become entrenched and harder to address.
About Westpac Institutional Bank
Westpac Institutional Bank (WIB) delivers a broad range of financial services to commercial, corporate, institutional and government customers with connections to Australia and New Zealand.
WIB operates through dedicated industry relationship and specialist product teams with expert knowledge in transactional banking, financial and debt capital markets, specialised capital, and alternative investment solutions. Westpac Institutional Bank, a division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714
About Commonwealth Bank
The Commonwealth Bank is Australia largest financial institution, providing convenient and accessible banking and financial services for all Australians.
Commonwealth Bank’s Institutional Banking & Markets provides relationship management and product capability for the Bank’s Corporate, Government and Institutional clients. They offer Total Capital Solutions to clients, ranging from core transactional banking to debt, equity and financial markets risk management products and services. In-depth knowledge of the Australian financial environment along with the Bank’s global presence and extensive experience in the markets, offers clients a unique set of solutions that caters to a wide range of business needs.
The Benevolent Society
We help people change their lives through support and education, and we speak out for a just society where everyone thrives. We’re Australia’s first charity. We’re a not-for-profit and non-religious organisation and we’ve helped people, families and communities achieve positive change for 200 years. www.benevolent.org.au
About The Benevolent Society Social Benefit Bond
In March 2012, a consortium led by Westpac with the Benevolent Society and the Commonwealth Bank won the New South Wales government tender to issue this bond, focussing on keeping at risk families intact, and thereby reducing the number of children entering the foster care system in New South Wales.
The project will be run by The Benevolent Society which has rigorously designed preventative programs for families. For more details on the program visit www.benevolent.org.au.