Page 146 - Social Enterprise A New Business Paradigm for Thailand

Figure 4.3 Management Structure of the Peterborough Social Impact Bond

Source: Translated and adapted from Popov E.V., Veretennikova A.Yu., and Kozinskaya K.M., “Financial Tools to
Develop Social Entrepreneurship.” The Social Finance Forum, 2(1), Figure 1, p. 2.

4) Green Bonds
Green bonds are financial instruments that offer fixed returns over the life of a project. They are
commonly issued by governments or institutions such as the World Bank to raise funds for
activities aimed at mitigating the impacts of climate change, such as clean energy projects,

sustainable agriculture, and water management initiatives. In addition to these funds, the World
Bank also utilizes blended finance instruments, pooling capital from governments, international
organizations, philanthropic foundations, and large-scale investors to co-finance health-related
projects for mothers and children. One example is the Global Financing Facility.

The private sector has also taken part in green financing. For instance, Apple Inc. has issued
several series of green bonds since 2016, amounting to billions of US dollars, to support global
warming mitigation efforts and promote sustainable technologies. Furthermore, there are other
financial instruments such as Sustainability-Linked Bonds (SLBs) and Sustainability-Linked Loans

(SLLs), designed to help industries improve energy efficiency and reduce consumption. However,
these instruments are generally not well-suited to Thailand’s small- and medium-sized social
enterprises due to their scale and complexity.

5) Crowdfunding
Crowdfunding refers to a method of raising funds by pooling small contributions from a large
number of individuals. These contributors are typically drawn from extensive personal and

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