Imagine for a moment that if institutions like CARE, the UN gender office or the Clinton Global Initiative had five times the amount of program funding available today. What would the world look like?

The creation of the Humanity Bond in the impact investing space has allowed this to become a potential reality/very real possibility. The Humanity Bond is the newest financial instrument Shujog and IIX have created to raise capital to serve social needs. As the name of the bond suggests, the Humanity Bond serves to improve humanity. Anchored upon the idea that saving lives today should not be constrained by the lack of funding, the Humanity Bond accelerates the availability of program funding and allows social service providers to frontload live-saving program implementation and make a large impact immediately. The Humanity Bond can enable service organizations to overcome the challenge of unstable, inconsistent cash flows while offering an attractive investment proposition to new investors: one which can create a social/environmental impact while simultaneously generating a modest financial return. It allows for everyone to take part in and help some of the world’s biggest humanitarian problems.

The Humanity Bond is also a great tool for service organizations to equip women. By providing preventive spending today rather than greater curative spending tomorrow, the humanity bond can change the lives of women across the health, education and agriculture sectors. In other words, the humanity bond attaches value to every single day that a mother is enabled through a cook stove, a woman is rescued from the sex trade, or a girl is vaccinated.

The closest model in impact investing to the Humanity Bond is the issuance by the International Finance Facility for Immunization (IFFIm). In an effort to vaccinate children today and prevent diseases from spreading, IFFIm raised USD$4.5 billion in capital markets for the GAVI Alliance, making large amount of funds available for the purchase and delivery of vaccinations immediately. With pledges from donor governments for future grants, IFFIm was able to raise six times the donor funds it would have received in the same period. This is equivalent to the ability to vaccinate millions of children.

The Humanity Bond is a game changer. So imagine again and picture a better world for us today.

 

By Jenna Liang
Research, Shujog