Social Finance, the consultancy that created the social impact bond, has said its pilot programme is likely to be oversubscribed by investors.
The consultancy planned to sell bonds worth £4.9m to social investors for the pilot of the bond, which pays investors according to the success of projects and is being piloted with a reoffending prevention programme in Peterborough.
Toby Eccles, the development director at Social Finance, said the project was on track to receive more commitments than were required.
The Big Lottery Fund has undertaken to pay up to £5.25m to bond holders, depending on the success of the programme, and Eccles said the Ministry of Justice would pay up to £3m more.
Social Finance has received £5m from the Big Lottery Fund to develop three further pilots, and Eccles said it was looking at a number of proposals from government agencies and service providers.