THE SDG OUTCOMES FUND

Promoteur – Intermédiaire Financier

BRIDGES OUTCOMES LTD,UBS FUND MANAGEMENT (LUXEMBOURG) SA,UBS OPTIMUS FOUNDATION

Lieu

• Régional - Afrique
• Régional - Océan Indien

Description

The project concerns an equity participation in the Sustainable Development Goals (SDG) Outcomes Fund, an impact equity fund targeting investments in development and social outcomes-based mechanisms. This operation will support programme implementers, with the goal of delivering better tangible impact outcomes to those who need it the most, in support of the EU-Africa Global Gateway Investment package objectives. The Fund will focus mainly on Regional Africa but will also target low-and middle-income countries in South and East Asia on an opportunistic basis. To this extent, the team will aim to allocate 70% of total invested amounts to eligible beneficiaries under the African, Caribbean and Pacific (ACP) Trust Fund representing more than c. 3x EIB commitment to the Fund.

Additionality and Impact

Through this operation, EIB will provide capital to partnerships where impact entrepreneurs are getting access to the capital they need to bring life-improving ideas to scale. In addition, governments are seeing the value in harnessing the innovation of the private sector and philanthropists funding the delivery of tangible outcomes.

Therefore, an EIB commitment will contribute to accelerate social progress and impact in emerging markets to spread opportunities and positive outcomes more widely. This investment in the Fund will help those left behind and would participate to the development of impact economies through the use of impact measurement and through a new way risk-return-impact. It will help investors and implementing partners (i.e SMEs, NGO) to generate solutions to the emerging markets urgent issues.

The vast majority of initiatives supported by EIB via the Fund will support the priorities of the EU-Africa Global Gateway Investment Package aiming at accelerating digital transition, strengthening health systems and improving education and trainings. The operation is also in line with the European Commission's priority to promote impact investments and find new ways to tackle development challenges through the growth of impact investments, measurement, and pay-for-outcomes programs.

It also represents an opportunity for EIB to participate in an innovative product that has a strong potential to generate innovative ways of social sector service delivery. This Fund will aim at reducing poverty, contributing to achieving the SDGs and creating sustainable jobs. It also provides measurable development impact, additionality, and co-financing, demonstration effect and adherence to social and environmental standards.

As a new potential investor, the EIB's commitment to the Fund is expected to bring the Fund closer to the target size. The Bank would support one of the very few players able to show a consistently strong impact track record and support vulnerable children and adults in various area of action. This is an opportunity for EIB join forces with a broad investor base, composed of public, institutional, and private investors. The Fund also aims to collectively raise standards for investing for impact and act as a market enabler for this asset class in emerging markets.

Objectifs

The aim is to support the education, environment, employment and healthcare sectors in these regions, through the implementation of innovative results-based programs by (i) investing in economically or socially disadvantage communities by delivering better health, employment, and educational outcomes to those who need them the most, (ii) improving agriculture and/or ecosystems through delivering environmental outcomes, while (iii) unlocking investments from the private sector and other Multilateral Development Banks. Individuals benefiting from these programs include children and adults in or at-risk of extreme poverty, individuals at-risk of easily preventable illnesses, and young people lacking access to basic education and employment. As a result, the Fund aims to contribute towards achieving the UN Sustainable Development Goals (SDGs) with a particular focus on SDG 1 (No poverty), SDG 3 (Good Health and Wellbeing), SDG 4 (Quality Education), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 13 (Climate Action), SDG 14 (Life under Water) and SDG 15 (Life on Land).

Montant BEI envisagé (montant approximatif)

USD 18 million (EUR 17 million)

Coût total (montant approximatif)

USD 100 million (EUR 94 million)

Aspects environnementaux

The fund's operational guidelines will provide for environmental and social due diligence of investee companies according to guidelines acceptable to the EIB.

Passation des marchés

The fund is expected to comply with EIB's procurement guidelines.

Statut

Signé - 4/04/2025