Building Humanitarian Impact Bonds in Developing Countries

Date

February 29, 2016

16 February 2016

SINGAPORE – AVPN and AVPN member, the International Committee of the Red Cross (ICRC), hosted a roundtable discussion centered on the recently launched Humanitarian Impact Bond (HIB). The afternoon began with a presentation on the HIB by Yves Daccord, Director-General of the ICRC which was followed by an engaging dialogue with the audience.

CC BY-NC-ND / ICRC

Daccord began by giving an overview of the current state of conflict zones and illustrating the fact that “over 90 million people suffer from physical disability yet only 10% of those actually have access to physical rehabilitation services”. This was one of the main drivers behind the launch of the HIB by the ICRC and the Belgian government. It is hoped that this model will help to increase the scale and social impact of inclusive physical rehabilitation services globally.

CC BY-NC-ND / ICRC Daccord outlined the value proposition, pointing out key stakeholders and their responsibilities and flow of funds. He also talked about investment characteristics, measurements used to evaluate success, and potential risk areas. The ICRC plans to construct new rehabilitation centers across five different regions simultaneously over a period of five years. The new centers will be established in “fragile environments” that currently do not have any form of rehabilitation services, emphasized Daccord.

Questions and discussions then ensued with the audience. Members were concerned with the impact assessment process, potential social investors, and the proposed financial returns. Tan Shuo Yan, Regional Social Impact Associate from Grab, questioned ICRC’s existing measurement methods and proposed as an alternative, a more sustainable metric would be able to illustrate the model’s success. Kevin Moon, Project Manager at BoP Hub, raised possible sources of potential social investors, while Matt Zhou, Executive Director at Equity Capital, expressed positive interest from an investor’s perspective but was keen to see a multi-year evaluation in place.

DSC_2681The roundtable discussion proved to be a great opportunity for the ICRC to test their newest initiative as well as to gather constructive feedback from key industry players. The session helped enhance members’ understanding of ICRC’s ongoing efforts.

 

 

 


About Author
Kelly Yen
Kelly Yen Senior Associate AVPN

Kelly Yen is a Senior Associate at AVPN overseeing the Deal Share Platform. Prior to AVPN, Kelly worked for Goldman Sachs’ Asset Management division in the U.S. where she played a lead role in designing and enhancing system efficiency to reduce operational and financial risks. She later spent six months with the Securities Division in Beijing working with teams to optimize existing processes. While at Goldman Sachs, Kelly was involved with the company’s “10000 Small Businesses” initiative, providing educational materials, professional insight, and opportunities for small business owners to succeed as entrepreneurs.

Kelly previously mentored at Youth in Focus, a nonprofit photography organization based in Seattle, and worked closely with teaching artists and students to foster a positive and safe environment for at-risk youth within the community.

Kelly holds a B.A. in Business Administration with a focus in Finance from the University of Washington in Seattle.