The Resolve Social Benefit Bond (Resolve SBB) provided investors with an opportunity to generate a competitive financial return while improving the lives of people experiencing mental ill-health in NSW.

Investors funded the working capital of the Resolve Program, a recovery-orientated community support program which combined a residential service for periodic crisis care integrated psychosocial, medical and mental health support; and a warm line for after-hours support from peers.

The Resolve Program was delivered by Flourish Australia, a highly experienced mental health service provider and a national leader in the employment and support of mental health peer workers. It was delivered with the Nepean Blue Mountains and Western NSW Local Health Districts.

The Resolve Program provided up to two years of community support to 469 individuals who had spent significant time as a mental health hospital inpatient prior to their enrolment.

The Resolve SBB was expected to improve the mental health and wellbeing of participants, while generating significant savings for the NSW Government through a reduction in participants’ utilisation of health and other services, in particular by reducing the number of days spent in hospital.

Over the term of the Resolve SBB, participants used almost two-thirds less health services compared to the year prior to their enrolment in Resolve, and experienced reductions in their average lengths of stay in hospital, their overall time spent in hospital and the rate at which they presented to emergency departments – 26%, 66% and 36% respectively.

The outcomes, stories and reflections from the Resolve SBB are detailed in the investor reports below.

The Resolve SIB structure

Resolve SIB structure

Key features

  • Investor returns were linked to outcome payments made by the NSW Government to the Resolve SBB Trust, which were based on Government savings generated by the Resolve Program
  • Government savings were measured by comparing participants’ consumption of health services with participants’ experience relative to their year prior to enrolment
  • 7.5 year bond term
  • 2% p.a fixed interest payments over 4.75 years, then performance coupons based on the level of Resolve SBB Trust assets
  • Delivered a financial return to investors of 3.4% p.a. (slightly lower than the target scenario estimated return 7.5% p.a.)

Invest

Please note that the Resolve Social Benefit Bond is now closed for investment. For further details, please refer to the following documents:

Results

SVA prepared reports on the results of the Resolve SBB:

Investor updates

Evaluation reports

Reports from the evaluation of the Resolve SBB are available.