First impact bond funded by the EU to address immigrant integration in Finland
The European Investment Fund (EIF), Epiqus, a fund manager dedicated to investments with a social impact, and the Finnish Ministry of Economic Affairs and Employment have announced a social impact bond scheme, the first of its kind in Europe.
EIF will make an investment of EUR 10 million into a social impact bond scheme that will support the integration of between 2,500 and 3,700 migrants and refugees into the Finnish labour market through the provision of training and job-matching assistance.
This agreement was made possible by the support of the European Fund for Strategic Investments (EFSI). The EFSI is the central pillar of the European Commission’s Investment Plan for Europe, the so-called “Juncker Plan”.
Social impact bond schemes facilitate risk-sharing between private and public investors to help local, regional and national governments improve efficiency in spending and increase the value for money in social service delivery.
This is the second investment with innovative impact investing approach as core component together with the loan for the new hospital in Treviso.