TY - JOUR
T1 - How to attract professional investors in developing countries? An evidence-based structure for development impact bonds
AU - Gallucci, Carmen
AU - Del Giudice, Alfonso
AU - Santulli, Rosalia
PY - 2022
Y1 - 2022
N2 - This paper deals with the rationale issue of financing developing countries by deepening the characteristics of Development Impact Bonds (DIBs). The World Economic Forum, in 2018,
introduced them as “pioneering and promising financial instruments”. However, to date, their spread is modest because of their structural, contractual and financial features, which make them
unattractive to professional investors. Therefore, the paper proposes a new DIB structure, which is more appealing and easy-to-understand for practitioners and is able to mitigate potential agency
problems.
AB - This paper deals with the rationale issue of financing developing countries by deepening the characteristics of Development Impact Bonds (DIBs). The World Economic Forum, in 2018,
introduced them as “pioneering and promising financial instruments”. However, to date, their spread is modest because of their structural, contractual and financial features, which make them
unattractive to professional investors. Therefore, the paper proposes a new DIB structure, which is more appealing and easy-to-understand for practitioners and is able to mitigate potential agency
problems.
KW - development impact bond, social finance, sustainable finance
KW - development impact bond, social finance, sustainable finance
UR - http://hdl.handle.net/10807/198642
U2 - 10.1016/j.frl.2022.102816
DO - 10.1016/j.frl.2022.102816
M3 - Article
SN - 1544-6123
VL - 46
SP - N/A-N/A
JO - Finance Research Letters
JF - Finance Research Letters
ER -