Red Cross links investors to war zones with first ‘humanitarian bond’
A new funding model launched by the Red Cross aims to attract private capital to conflict zones to help some of the world’s neediest people, while giving investors a return on their money.
The “Humanitarian Impact Bond” set up by the International Committee of the Red Cross’ (ICRC) with a value of 26 million Swiss francs ($27.5 million), has attracted capital from New Re, part of global reinsurer Munich Re Group, among other investors.
The money will be used to build and run three rehabilitation centers for disabled people in Nigeria, Mali and Democratic Republic of Congo, the ICRC said, complete with staff who will be trained in physiotherapy and in producing prosthetic limbs.
It is the first time the ICRC has used such a funding model – channeling private capital investments rather than relying only on government or philanthropic donations for humanitarian projects.