1. Social Finance Forum: August 8
Greg Peel
out of the box: blending capital solutions

2. demand for social finance is increasing
• not-for-profit sector - huge & diverse
• 600,000 organisations
• many different tasks and aims
• capacity of not-for-profit providers of social impact
• subsectors of the not-for-profit sector
• government, community and business building society

3. supply
• emergence of impact investing
• initiatives around the world
• Australian government programs

4. linking supply & demand
• developing the mechanisms
• managing risk and yield
• overseas examples
• the bond market
• social impact bonds
• housing bonds

5. phanthropic
/ donations
grants &
gov’t
contracts
gov’t support
& guarantees
gov’t / SEDIF
/ CDFI
(SEFA,
Foresters,
SVA)
bank lending:
-CSB
- other Banks
community
bank
reinvest
strategy
crowd
funding
-social impact
bonds
- housing
bonds
corporate
impact
support (risk
mitigation)
fixed
interest
impact
investing
(SIDA)
equity
quasi /
equity
impact
investing
Social
return on
investment
social finance and capital markets
United
Kingdom
CDFI tax incentive
social
infrastructure
fund
housing
bonds
social
impact
bonds
big society
capital
emerging marketsavailable

6. blending capital solutions
• normalising risk and yield
• new products that are attractive to investors

7. social infrastructure
funding requirements
100%
0%
bank debt
risk appetite
blended capital
solution
• grant / philanthropy
• credit enhancement
• crowd funding
• government support
social infrastructure
project funding requirements

8. examples of blended
structures
shared equity, home purchase plans
social enterprise funding

9. microfinance: in-roads
individual
finance
Bendigo Bank
Community
Sector Banking
risk mitigation
risk mitigation
intro / management

10. corporate
contract
Aboriginal owned
enterprise
funding bank
debt
income streams
risk mitigation
affordable finance amount
corporate risk mitigation

11. blending capital solutions
• normalising risk and yield
• new products that are attractive to
investors

12. our story
• 2002 - launched as joint venture
of Bendigo Bank & Community 21
consortium of 20 not-for-profit
organisations
• 2013 - eleventh anniversary,
7,000 not-for- profit customers
ranging from small local
community groups to national
charities

13. our not-for-profit shareholders

14. connecting digitally
/communitysectorbanking
/csbanking
/csbanking
keep ‘in the loop’ by visiting us at
www.communitysectorbanking.com.au