|SOCIAL IMPACT BONDS||
A $1.1m pilot SiB was issued in Fresno, California, which aims to reduce the rates of asthma in underprivileged communities. The bond will finance Fresno’s Clinica Sierra Vista, a not-for-profit, to work with 1,100 low-income asthma patients who often require expensive hospitalisation.
Historically, 20% of the residents of Fresno suffer from asthma, relative to the American average of 8%. Insurers spend over $5,000 per person each year on emergency hospitalisation. The bond programme hopes to reduce the rate of emergency hospital visits by 30-40% per year.