RPT-Israel Launches First Social Impact Bond to Prevent Diabetes
Some 2,250 Israelis at risk of Type 2 diabetes will be helped to make lifestyle changes that could prevent the disease developing under a pioneering scheme to be financed by private investors.
If the interventions are successful in preventing the onset of diabetes, two Israeli public health organisations and the National Insurance Institute will repay the investors from savings made by reducing healthcare and disability costs.
To fund the trial, Social Finance Israel, which describes its activities as a hybrid of philanthropy and investment, and partner UBS will sell a $5.5 million social impact bond — the first related to diabetes prevention — to foreign and Israeli investors.
Caroline Anstey, Head of UBS and Society, a global initiative launched by the Swiss investment bank in 2014 which covers activities in sustainable investing and philanthropy, told Reuters on Monday the Israeli bond will serve as a pilot. Countries such as Mexico and India have expressed interest in similar projects.
- Health Care