NGS Super is the first large institutional investor to commit to the program, according to the statement. The investment will help to fund the Newpin program run by UnitingCare Burnside, designed to prevent children entering foster care.
The private investment will also help support the maintenance of existing centres and the planned expansion of six more in NSW, NGS Super stated.
Investors are expecting a targeted financial return of 10 per cent to 12 per cent per annum over the seven-year term of the bond, based on the expected success of the program.
The restoration rate of children who enter the program is the key performance indicator, which in turn produces the interest rate and repayment obligations of the Newpin SBB.
The investment in Newpin’s SBB aligns closely with the fund’s community-based values, said NGS Super CEO Anthony Rodwell-Ball.
“Not only does it make good financial sense, but our commitment to Australia’s first social benefit bond strongly aligns with our members’ vocation and interests in supporting the well-being of children and families in the community,” Mr Rodwell-Ball said.
