LONDON – Global law firm Reed Smith today announced the closing of the world’s largest education development impact bond (DIB), the Quality Education India DIB, by the firm’s social impact finance practice.

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A Reed Smith team led by London-based structured finance partner Ranajoy Basu advised the British Asian Trust (“BAT”) - a charity set up by the Prince of Wales - on the legal and structuring aspects of an $11 million DIB which aims to improve the literacy and numeracy learning standards of approximately 300,000 primary school students from marginalised communities in the State of Gujarat and the National Capital Region in India. The total raised to date is $11 million. This is the successful first close and the intention is to double the DIB in size in the coming years.

UBS Optimus Foundation (“Optimus”) provided the upfront risk capital to three different service providers who will implement the project on the ground in India over four years. BAT, the Michael & Susan Dell Foundation and Tata Trusts were the outcome funders, providing outcome payments to Optimus only upon the achievement of certain pre-determined target outcomes, as evaluated by an independent outcome evaluator.

The UK Government’s Department for International Development is the technical assistance partner for the DIB, providing funding for programme management, legal advice, advocacy, evaluation and acting as overall thought partner, bringing experience from other DIB programmes it has been involved in. BAT, on this DIB, is being funded by Comic Relief, the Mittal Foundation, and BT (British Telecom).