Impact bonds are a recent mechanism to address social issues by involving the private sector, government, and nongovernmental organizations. Among the first candidate countries in Latin-America to implement such mechanisms are Mexico, Chile and Colombia. However, notwithstanding the several proposals and projects designed in these countries to alleviate internal social problems, no impact bonds have been implemented yet. This research attempts to identify the unique constraints within each country that hinders the implementation of impact bonds through the policy transfer approach. The findings show that the constraints are related to the politicization by interest groups in some areas (Mexico), the political cycles (Colombia), and the level of centralization (Chile).