Regional: Developing a Regional Social Investment Exchange Initiative
A social stock exchange (SSE), also known as a social investment exchange, is a mechanism to raise funds for social enterprises. Social enterprises are business ventures with a social mission, generating environmental or social benefits, as well as financial returns. Their distinguishing feature is their social purpose, with profits being reinvested for a social cause. An SSE aims to link social enterprises seeking capital with investors looking for opportunities to generate both financial and social returns on their investments. Several models for an SSE currently exist. Some simply raise funds online for social enterprises others go through a rigid vetting process and end up with accredited enterprises some use over the counter transactions. The first operating model of an SSE was set up in June 2003 by BOVESPA, the Stock Exchange of Sao Paolo, Brazil, as a corporate social responsibility program.
Edes, Bartlet W.
Regional and Sustainable Development Department
Request for information
- Technical Assistance
|Project Name||Developing a Regional Social Investment Exchange Initiative|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change|
|Sector / Subsector||
Education / Education sector development
Finance / Money and capital markets
Health / Health care finance
Industry and trade / Small and medium enterprise development
Water and other urban infrastructure and services / Urban policy, institutional and capacity development
|Gender Equity and Mainstreaming||No gender elements|
|Description||A social stock exchange (SSE), also known as a social investment exchange, is a mechanism to raise funds for social enterprises. Social enterprises are business ventures with a social mission, generating environmental or social benefits, as well as financial returns. Their distinguishing feature is their social purpose, with profits being reinvested for a social cause. An SSE aims to link social enterprises seeking capital with investors looking for opportunities to generate both financial and social returns on their investments. Several models for an SSE currently exist. Some simply raise funds online for social enterprises others go through a rigid vetting process and end up with accredited enterprises some use over the counter transactions. The first operating model of an SSE was set up in June 2003 by BOVESPA, the Stock Exchange of Sao Paolo, Brazil, as a corporate social responsibility program. Other platforms bringing together investors with social enterprises have been set up on other continents: the South Africa Social Investment Exchange the Global Exchange for Social Investment (GEXSI), based in the United Kingdom and Germany and the UNDP sponsored pilot South South Human Development Stock Exchange. The Impact Investment Exchange (IIX) aims to be the first SSE established in the Asia and Pacific region. In January 2010, the United States based Rockefeller Foundation provided a $495,000 grant to IIX to support research and proof of concept analysis that IIX will undertake prior to launch of its exchange. This Regional Research and Development Technical Assistance (R RDTA) aims to undertake studies to determine the feasibility of a pilot a regional SSE that brings together social enterprises from ADB developing member countries (DMCs) seeking capital, and impact investors seeking financial profits along with social benefits. It will build on and support ongoing efforts, including the research and proof of concept analysis funded by the Rockefeller Foundation, to establish a regional SSE through policy research, advisory support, and knowledge sharing. A fact finding mission confirmed the impact, outcome, outputs, implementation arrangements, cost, financing arrangements, and terms of reference with potential partners. Consultations with known civil society and social enterprises in the region have also indicated interest in the proposed project.|
|Project Rationale and Linkage to Country/Regional Strategy||Regional cooperation and integration (network and partnership development, other regional public goods), capacity development (institutional development)|
|Impact||The TA will promote inclusive growth by providing goods, services and livelihood opportunities to poor and disadvantaged people.|
|Description of Outcome||
Enhanced awareness and development of the region's social enterprise sector
More intermediation services between social enterprises and potential investors
|Progress Toward Outcome|
|Description of Project Outputs||
1. Social enterprise market size and readiness
2. Impact investment profile
3. Intermediation research
4. Forums and awareness-raising activities
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||OUTLINE TERMS OF REFERENCE FOR CONSULTANTS Output 1: Social Enterprise Study International Consultant (5 person months, intermittent) The consultant will have an expertise and solid track record in successful social enterprises, including their formation and operation in the region. S he will have an advanced degree in economics, business, law, international relations, finance, regulatory regimes or related fields with at least 10 years of experience in the field of social enterprises and their formation and regulation. Under the supervision of ADB staff, the consultant will: (i) prepare background and analytical papers on the topics assigned by ADB staff, related to this TA. This should involve both quantitative and qualitative analysis from secondary data, interviews, surveys and information forums (ii) in close coordination with ADB, taking into account the experience in the region and outside, and with the assistance of national consultants in DMCs, prepare region wide studies on: size of the social enterprise market and readiness of social enterprises to absorb capital (based on measures such as maturity, scale, and readiness to expand) key needs and organizational gaps of social enterprises (e.g., capital, governance, management commitment, etc.) (iii) develop a framework for country researches covering the areas mentioned above (iv) review outputs of national consultants and provide guidance for the completion of country level studies (v) present research findings and participate actively in forums and workshops. (vi) revise and finalize the papers for publication (vii) review and provide comments on the papers prepared by the other members of the study team (viii) assist ADB and its partners in disseminating research outcomes of the technical assistance (TA) and (ix) assist in integrating the overall findings and in reflecting these in a single report for the TA. National Consultants (12 person months, intermittent) The national consultants will be based in participating DMCs and shall have relevant country knowledge, experience with social enterprises, and ability to draw analysis from market data. They will have a degree in economics, business, philanthropy, or related fields. They shall: (i) prepare background and analytical papers on the topics assigned by ADB staff, related to this TA (ii) undertake country level studies in support of the international consultant on: target social enterprises ready to list on a regional SSE key needs and organizational gaps of social enterprises (e.g., capital, governance, management commitment, etc.) (iii) prepare illustrative country case studies that showcase both the weaknesses and strengths of social enterprises as well as success stories of bridging the information and scaling up gap between SEs and investors. (iv) assist in the organization of country investment forums. (v) present research findings and participate actively in country investment forums (vi) revise and finalize the papers for publication (vii) assist ADB and the partner institute in disseminating research outcomes of the technical assistance (TA) and (viii) prepare and submit quarterly progress reports Outputs 2 and 3: Impact Investment and Intermediary Assessment Partner Research Institution (3 months, intermittent) The partner research institution, with recognized expertise in research and technical assistance work on impact investing, the social stock exchange concept, and social enterprise development, will be engaged to organize and coordinate the preparation, publication, and dissemination of research outputs under Outputs 2 and 3. It shall undertake the following: (i) in consultation with ADB, the partner institution will develop the outline for the studies under outputs 2 and 3 (ii) prepare and finalize, in close coordination with ADB the following: profile of potential impact investors for Asia and the Pacific assessment of conditions which a regional SSE must meet to attract impact investors study on interest of market intermediaries and facilitators to support listing of social enterprises on an SSE and to support SSE operations (financial advisors, law firms, rating agencies, research organizations, etc.) and others as may be assigned by ADB (iii) organize, present and or participate in conferences or forums to disseminate research outputs (iv) update ADB staff regularly on the progress of various activities and (v) contribute to the preparation of the final report of the TA. Output 4: Forums and Awareness Raising Activities National Consultant (6 months, intermittent) A national consultant (based in ADB headquarters, 6 person months, intermittent) will be engaged to support the preparation and management of forums, meetings, and other activities. S he will have experience in organizing knowledge sharing events or investment forums. The national consultant will perform tasks under the supervision of RSGS staff. He or she will: (i) set up and maintain a website for the TA (ii) support and manage forums and facilitate online networking among the consultants and ADB staff (iii) participate in and document meetings and workshops (iv) collect key documents and data related to the TA and summarize them for those working on (or in support of) the TA (v) provide logistical and administrative support to knowledge exchange and the conduct of studies (vi) assist the team leader in overall RETA administration and the logistics for the studies, forums, meetings, and other activities (vii) assist in the preparation of presentations and publications and (viii) perform other tasks relevant to this TA.|
|Responsible ADB Officer||Edes, Bartlet W.|
|Responsible ADB Department||Regional and Sustainable Development Department|
|Responsible ADB Division||Poverty Reduction, Social Development, & Governance Division, RSDD|
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
|Concept Clearance||18 Feb 2009|
|Fact Finding||11 Mar 2010 to 25 Mar 2010|
|Approval||18 Jun 2010|
|Last Review Mission||-|
|PDS Creation Date||04 May 2010|
|Last PDS Update||16 Jun 2010|
|Approval||Signing Date||Effectivity Date||Closing|
|18 Jun 2010||-||18 Jun 2010||31 May 2012||31 Dec 2012||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||600,000.00||0.00||0.00||0.00||0.00||600,000.00||29 Sep 2021||535,327.09|
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|Title||Document Type||Document Date|
|Developing a Regional Social Investment Exchange Initiative||TA Completion Reports||Oct 2013|
|Developing a Regional Social Investment Exchange Initiative||Technical Assistance Reports||Jun 2010|
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