Investment supports program to more readily connect Veterans living with service-connected Post Traumatic Stress Disorder (PTSD) to quality employment opportunities and improve lives
Press Release – New York, October 4, 2018, BNP Paribas is pleased to announce that it is an anchor investor into a $5.1 million fund for Veterans Coordinated Approach to Recovery and Employment (“Veterans CARE”), a Pay for Success project to improve employment outcomes for Veterans with service-connected PTSD. BNP Paribas is supporting this project in partnership with Social Finance Inc., The United States Department of Veterans Affairs (VA), the Commonwealth of Massachusetts, the City of Boston, the City of New York, and other participating lenders.
This investment continues to grow BNP Paribas’ Pay for Success transaction portfolio, with major investments in the United States and France. In 2016, the bank closed a credit facility for the State of Connecticut’s first Pay for Success Project (the “Connecticut Family Stability Pay for Success Project”), launched by the Connecticut Department of Children and Families.
Pay for Success contracts, also known as “Social Impact Bonds,” are innovative public-private partnerships that combine nonprofit expertise, private sector funding, and independent evaluation to transform the way governments respond to chronic social problems. Through this model, private capital is raised to cover upfront costs for high impact programs while repayment to private investors only occurs if the program meets predetermined performance outcomes. Independent evaluators measure the effects of the program based on specific metrics that benefit both individuals and society.
The Veterans CARE project will serve 480 Veterans over three years in New York City, Boston, Brockton, MA., and Central and Western Massachusetts. Local VA medical centers will deliver Individual Placement and Support (IPS), an evidence-based approach to supported employment, to program participants. The Tuscaloosa VA Medical Center (TVAMC) will oversee and monitor the project. The participating governments will repay investors if the project successfully achieves positive outcomes for participants. Measures of success include earnings level, sustained competitive employment, fidelity to the IPS model, and job satisfaction.
Bob Hawley, CEO of BNP Paribas CIB Americas & Head of Global Markets Americas stated, “BNP Paribas has a proven track record of investing in Pay for Success projects in order to drive social change across the Americas. Through the Veterans CARE project, we are determined to help improve employment possibilities for US Veterans living with Post-Traumatic Stress Disorder.”
BNP Paribas remains committed to financing sectors that have significant positive impacts on local job creation and the overall strengthening of society. As of June 30, 2018, BNP Paribas had over €1 billion of commitments in support of social entrepreneurship and microfinance, serving approximately 1,500 clients and partners. In addition, as of the end of 2017, BNP Paribas had arranged €155 billion of financings directly contributing to the achievement of the United Nations’ Sustainable Development Goals (SDGs).
For more information regarding this project, please visit: http://socialfinance.org/news/va-partner-organizations-launch-innovative-approach-using-long-term-employment-improve-lives-veterans-ptsd/
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BNP Paribas has built a strong and diversified presence in the United States to support its client base. The bank employs close to 15,000 people and has had a presence in the USA since the late 1800s. Bank of the West serves over 2 million individuals and small & businesses through a network of around 600 branches and business centers. Large corporate and institutional clients are serviced by BNP Paribas’ Corporate & Institutional Banking franchise that has a presence in the main US cities, in addition to a global reach through a network of offices in EMEA and APAC. The bank also offers asset management services through BNP Paribas Asset Management as well as Real Estate and Fleet Services through partnerships. The Bank owns an equity stake in Nasdaq-listed First Hawaiian Bank which was previously 100% owned by BNP Paribas. . www.usa.bnpparibas
About BNP Paribas Group
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including around 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realize their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. www.group.bnpparibas