It's very simple: A "social bond" is an IOU issued in return for bond-buyers giving government even more of their money. The only difference is that not every bond-buyer gets their money back.
That appears to be the point of a "social bond."
So it's like a raffle ticket, but with a "government commissioner" goosing the draw.
The Key Government's first social bond has collapsed, with negotiations breaking down and the provider walking away…