NAB & Life Without Barriers' #YouthChoices Social Benefit Bond

National Australia Bank (NAB) has partnered with social purpose organisation Life Without Barriers and the Queensland Government to launch a social benefit bond (SBB), #YouthChoices, that aims to assist young people at risk of criminal reoffending.

Investors in the SBB, arranged and managed by NAB, will fund the establishment of Queensland's first Multi Systemic Therapy (MST) program, which will be delivered by Life Without Barriers. The achievement of agreed outcomes from the program will trigger performance returns to investors.

Commenting on the launch, Life Without Barriers' chief executive, Claire Robbs, said: "It is well known that punitive sanctions against young offenders, such as detention, are ineffective in reducing reoffending in many cases. This SBB provides investors with an opportunity to play a part in shaping an individual's future, and reduce the economic, social and financial costs to governments and communities."

National Australia Bank's chief customer officer, corporate & institutional banking, Mike Baird, added: "We are proud to work with the government and non-government sectors to deliver better outcomes for the community and help address the social problems faced by many of our customers and their families."

According to a statement from NAB, the $8.2 million SBB will pay a minimum coupon of 3% per annum over its 6.75 year life. Coupon payments from the third-year onward are dependent upon the performance level for the reduction in frequency of offending, as well as whether the Seriousness of Offending Improvement Threshold of 25% reduction in the frequency of offending behaviour is met.

The SBB is expected to be open to investors until 26 September 2017, before its launch on 3 October 2017.

Industry Moves caught up with James Waddell (above left), director for NAB's Capital Financing Product Group and Brad Swan (above right), executive director, strategy and engagement at Life Without Barriers, to find out more. Read the Q&A here