On 21st April, we reached a new milestone for social investment in Colombia by raising $300 million pesos in 4 minutes from 164 investors through the A2censo platform, which is regulated by the Superintendencia Financiera. The resources will be invested in the third Bono de Impacto Social in Colombia, which aims to employ 376 people living in poverty and vulnerability, with a minimum job retention of three months. This milestone demonstrates that the country is ready to invest in socially profitable projects and opens a new panorama of sustainability for the social sector in Colombia.
We will profit from our 20 years+ of experience working to improve the quality of life of young mothers in situations of poverty and vulnerability. We will also be one of the operators of this ‘payment by results’ project that seeks the inclusion and employment stability of the vulnerable population, identify successful models of labour insertion and reduce implementation costs. The employment rate of women in the country has been affected by the pandemic. Investing in women’s economic autonomy is a profitable business, as a woman with a formal, dignified and stable job has a multiplier effect that positively impacts her children, family, community and society in general.
Catalina Escobar, the President of Juanfe, said that “both for Juanfe and for the social sector, this project will allow the Foundation to open a new avenue of financing for non-profit organisations, bringing the capital market closer to the social investment market”.
She also explained that “this social impact bond is a ‘payment by results’ model, created in the context of the social emergency caused by the pandemic. ‘Payment by results’ is an innovative social investment mechanism that works on the basis of verified objectives met and involves three main actors: investors, operators and co-payers.
“The co-paying team offers to pay with interest for these results, so that those who invest with working capital, trusting in the effective management of the operators, will be able to obtain not only a social return, but also a financial return on their investment”, said Catalina Escobar.