Investment: Kois Invest
Type: Development impact bond
Refugee investment category: R4
SDGs addressed: 8, 10
Headquarters regions: Headquarters in Brussels, Belgium; Focus area in Jordan and Lebanon
Sector: Education & training services
Summary: Anchored by support from the Ikea Foundation, Kois Invest is designing the first development impact bond to improve refugee livelihoods in Turkey, Jordan, and Lebanon. Designed to improve efficiency and accountability, Kois Invest is structuring a bond to finance up to 6 organizations working to improve education and employment outcomes for Syrian refugees. If certain targets are achieved, such as job placements, governments and foundations will provide investors with a return. Kois Invest, based in Brussels, previously structured a 27.3 million bond with ICRC to provide services for people with disabilities in conflict zones.
Potential refugee impact: Today, Syrian refugees account for for over 20% of the world's refugees and internally displaced people. Three neighboring countries, Lebanon, Jordan, and Turkey have faced severe challenges successfully integrating refugees into their communities and their economies. The Kois Invest development impact bond is designed to improve educational and employment outcomes for refugees in the targeted geographies. As a pioneering impact bond, Kois Invest, Convergence Blended Finance, and the Ikea Foundation have the opportunity to shape the future of similar investments.
Investment thesis: Kois Invest's impact bond provides an opportunity for financial returns based on the achievement of agreed upon impact deliverables. With successful implementation, investors will be returned their initial capital along with a return from identified outcome funders.
Structure: Kois Invest, based in Brussels, was awarded a grant by Convergence Blended Finance to design an impact bond to support organizations providing employment and entrepreneurship services to Syrian refugees in Jordan, Turkey, and Lebanon. Kois Invest is currently raising $10-$30 million dollars for this impact bond, to be distributed to 2-6 organizations to provide skills training and entrepreneurship support for Syrian refugees and vulnerable populations in the targeted geographies over 2-3 years. If the organizations achieve predetermined results, investors will be repaid their initial capital plus a return from outcome funders like foundations and aid agencies.