Quality Education India DIB
The world’s largest development impact bond for education
The success of the Educate Girls Development Impact Bond (DIB) led to the Quality Education India DIB, which aims to change the lives of 200,000 primary school children in India. Partnering with an impressive coalition of public and private partners, as social investor we’ve provided 2.9 million Swiss francs in up-front working capital to three local NGOs for improving education quality.
The first phase of the program raised 11 million Swiss francs6. The intention is to double the size of the DIB in the coming years. If learning targets are met, the outcome funders will make payment each year, with up to a 8% IRR.
CHF 11 million
CHF 11 million
over four years will provide quality interventions to improve literacy and numeracy for 200,000 children
< 50%
< 50%
by the age of 10 (grade 5), fewer than 50% of Indian primary school pupils have reached the reading level of a 7-year-old (grade 2)
Investment in social outcomes
As social investor, UBS Optimus Foundation is providing up-front working capital to frontline NGOs so they can get to work improving education.
Implementation
The education NGOs aim to improve literacy and numeracy in children. The focus is on predefined and measurable learning outcomes, not on any set activities.
Outcome funding
The outcome funders repay the social investor – with a possible return – if learning outcomes are achieved. Repayment and returns fund further philanthropic programs.
See what leaders say about the world’s largest development impact bond in education
See what leaders say about the world’s largest development impact bond in education