The Australian state of Queensland is raising A$6 million ($4.45 million) through its first social impact bond in order to help reconnect foster care children with their families.
The program aims to get 560 children back in their family homes by providing support, including group and individual therapy, to parents. Investors will get paid based on the percentage of families reunited within six months of the children entering foster care.
The state anticipates saving A$58 million over five years. Queensland now spends $50,000 per foster child per year, and only 16 percent of kids go back to their family homes.
The bond was developed by Social Ventures Australia, which this year raised a $9 million social impact bond to fight homelessness in Adelaide.
Social Ventures is looking to raise capital from about 40 investors, and is offering 7.5 percent for investments above A$50,000 ($37,000).