Binder Grösswang – Pro Bono Counsel for a Good Cause
The renowned law firm Binder Grösswang is advising on the creation of an innovative “social impact hybrid bond” (SIB) to finance the social project “CAPE 10”.
Binder Grösswang is supporting the project “CAPE 10 – Haus der Zukunft und sozialen Innovation”, a future medical treatment centre for homeless and socially disadvantaged people, initiated by the well-known Viennese doctor Siegfried Meryn. The law firm is advising on the financing of the project, particularly in connection with the creation of a social impact hybrid bond intended to get the non-profit foundation up and running. This financial instrument is a new, innovative financing model that is being used in Austria in connection with a double-digit million euro project for the first time.
Commenting on the firm’s pro bono contribution to the project, BINDER GRÖSSWANG Managing Partner Michael Kutschera stated: “In 2015, Binder Grösswang initiated the corporate social responsibility program WE CARE in order to help people in need.”
“We attach great importance to giving help where help is needed. We are supporting Cape 10 because children are our future,” added Binder Grösswang Partner Emanuel Welten.
The CAPE 10 Foundation building, which is to be built in Vienna’s 10th district, will house non-profit companies devoted to the medical care of people in need, as well as profit-oriented enterprises from the health sector.
Unlike typical SIBs, in this hybrid model any repayment the investors receive will come not from the public sector but from the revenue of the profit-making enterprises housed in the building.
The Binder Grösswang team, led by Emanuel Welten, also included Florian Khol, Thomas Berghammer, Maximilian Höltl, David Rötzer and Stefan Pirker.
To implement the project, the non-profit foundation CAPE 10 Stiftung was established. Its purpose is to promote the well-being of people who are in need due to illness or other reasons. The non-profit character of the project is thus ensured for an indefinite period. The social entrepreneurship undertaking CAPE 10 is being financed by means of a real-estate loan as well as through private investors, donations, pro bono services and a new, special form of bond, a so-called “social impact hybrid bond”.