Chapter 08 · Finance, data & evidenceSustainable Finance & Investment
Development impact bond (DIB)
Definition
A development impact bond is an outcomes-based financing structure in which private investors provide upfront capital for a service provider to deliver a development programme, and an outcome payer — typically an external aid agency or philanthropic organisation — repays investors only if pre-agreed, measurable outcomes are achieved. DIBs are the international counterpart to social impact bonds, where the outcome payer is usually a domestic government.
References
definition, parties and DIB/SIB distinction
Overview
What it means
Shifting delivery risk to investors and paying for verified results rather than inputs or activities.
How it is used
DIBs have funded education, health and livelihoods programmes in developing countries; the structure demands rigorous outcome measurement and independent verification.
Why it matters
DIBs are a flagship instrument of results-based development finance, tying scarce aid money to demonstrated impact.