Social Finance Israel

A financial intermediary which aims to provide both social and financial goals to its investors. It issues social-financial products in order to attract new capital for the most effective not-for-profit organisations in Israel.

In June 2013, The Portland Trust, together with a number of partners, incorporated Social Finance Israel (SFI), a public benefit company, to act as Israel’s first social- financial intermediary. It is working to issue innovative investment tools, such as Social Impact Bonds (SIBs),  to attract new capital towards non-profit organisations and social enterprises in Israel, while allowing monetary returns to investors. It is chaired by Sir Ronald Cohen and is overseen by other leading figures from Israel’s social and financial sector. It is a sister organisation to Social Finance UK and Social Finance US.

The first ever SIB in Israel was launched by SFI in October 2015. This Bond targets the reduction of dropout rates among computer science students at higher education institutions. The first outcome payment was made to investors in January 2017 and the third cohort of students will commence in Autumn 2017. In March 2016, SFI signed its second SIB, aimed at preventing the onset of Type II Diabetes and the first recruitment of participants is at an advanced stage. SFI continues to develop further SIBs including those targeting prisoner rehabilitation, reduction of mortality from colon cancer and improved educational achievements for Bedouin students.