Impact Bonds Conference: Pathways to Scale January 18th, 2018 Session: Humanitarian Impact Bond Speaker: Tobias Epprecht, Head of Project, ICRC

ICRC Humanitarian Impact Bond (HIB) - Objectives Increase the number of persons having access to physical rehabilitation Mobilize additional resources to expand the ICRC’s PRP Improve the overall operational efficiency of Physical Rehabilitation Centers Test and consequently deploy proven efficiency measures Design, test and deploy a Digital Center Management Tool Expand the funding base of the ICRC Secure multi-year funding Enable private capital to support humanitarian activities Develop new partnerships with the private sector Design and test an innovative financing instrument Understand opportunities and constraints of innovative financing Build basis to further develop such funding mechanisms

Verification Provider Parties to the HIB ICRC will offer social investors & outcome funders: quarterly status update reports semi-annual operational review committee meetings Pledge to ICRC to pay at the end of year 5. Payment by Results to ICRC according to predefined SER thresholds Finance over 5 years the intervention implemented by the ICRC Conditional Pledge Investment 2 1 Social Investors Outcome Funders 6 5 Return Payment Payment by Results Implementation of Services for individuals with physical disabilities in Mopti, Mali, Maiduguri, Nigeria and Kinshasa, DRC 3 Outcome Verification Assess the outcome-based Staff Efficiency Ratio (SER) 4 Phase I Phase II 4 Train staff Build and equip centres Test efficiency measures Run centres 4 Year 1 Year 2 Year 3 Year 4 Year 5 Verification Provider

HIB – Who pays what when Budget Investment “la Caixa” Foundation Social Investor Amount CHF equivalent Share Social Investor I CHF 7’434’880 7’434’880 39.98% Social Investor II EUR 2’397’308 2’565’120 13.97% Social Investor III EUR 1’600’000 1’712’000 9.20% Social Investor IV EUR 1’000’000 1’070’000 5.75% Social Investor V EUR 500’000 535’000 2.88% Social Investor VI Social Investor VII Social Investor VIII EUR 2’199’264 2’353’212 12.65% Social Investor IX GBP 1’486’976 1’858’720 9.99% Total N/A 18’598’932 100% Budget Outcome Funder Amount CHF equivalent Swiss Confederation CHF 10’000’000 10’000’000 Kingdom of Belgium EUR 8’696’990 9’305’779 Republic of Italy EUR 3’000’000 3’210’000 The United Kingdom GBP 2’000’000 2’500’000 “la Caixa” Foundation EUR 1’000’000 1’070’000 Total N/A 26’085’779 Investment “la Caixa” Foundation PbR - Outcome Funder Cash leftover ICRC First Loss Guarantee Return Payment to Investors

HIB – Challenges, Lessons Learned & Outlook HIB – A pilot project, with all its ups and downs, pros and cons Data & Outcome Measure Scale Complement, not substitute Outcome Funders, Outcome Funders, Outcome Funders, …

Thank you!