35168 - BoP Impact Exchange Fund

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Summary of Investment Information

Project Number

35168

Company Name

BIX CAPITAL B.V.

Date SPI Disclosed

May 6, 2015

Country

Africa Region

Region

Africa

Projected Board Date

Jun 30, 2015

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Aug 11, 2018

Department

Regional Industry - FIG Africa

Industry

Funds

Previous Events

Approved : Dec 14, 2017
Signed : May 2, 2018
Invested : Aug 9, 2018

Sector

Other Non-Private Equity Fund

Project Description

IFC proposes an investment of US$8 million in Senior B Notes of the BoP Impact Exchange Fund (“BIX Fund”). The proposed BIX Fund aims to provide impact based debt finance to small, innovative and fast growing manufacturers and distributors of household appliances designed for the world’s least affluent people in order to improve their health and sanitation as well as to protect the local and global environment. The target appliances are in particular clean cookstoves but also other appliances such as solar lanterns, water purification systems and biogas digesters.

BIX Fund will primarily lend to companies with already registered and operational impact certificate issuance programs, such as Program of Activities (“PoAs”) registered by the regulatory body under the UNFCCC to generate Certified Emission Reductions (“CERs”) and PoAs approved by highly recognized carbon standard providers to generate Verified Emission Reductions (“VERs”). Revenue from sales of these impact certificates is expected to be the primary source for loan repayments to the BIX fund. The BIX Fund will especially focus on projects with significant social and health benefits for the people at the Bottom of the Pyramid in the least developed countries.

This innovative pilot fund targets a minimum closing amount of US$30 million. BIX Fund will be incorporated as a partnership under Dutch law called Fonds voor gemene rekening (“FGR”).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	3.50
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

1. Scalable distribution of clean technologies: The business model of the Fund enables distribution of clean cookstoves, biogas digesters, solar lanterns, and water purification systems to households.
2. Health and financial benefits to households at BoP, especially for women and children: The distributed technologies will reduce indoor air pollution caused by fuelwood, charcoal and kerosene burning and will provide safe water, contributing to the improved health of families especially women and children, and reduction of energy and medical expenses.
3. Access to finance: The Fund will provide finance to small and fast growing manufacturers and distributors of highly efficient appliances designed for the least affluent people at the BoP.
4. Reduced GHG emissions: Use of high efficiency appliances in households reduces the use of non-renewable biomass, thus reduces emission of CO2.
5. Job creation: The business model helps create jobs for manufacturers, distributors and retailers of efficient clean technologies.

1. Supporting an innovative business model: By being an anchor investor, IFC supports the promotion of an innovative business model to provide a means to scale up the use of modern energy products across the BoP.
2. Attracting other co-investors and impact investors: IFC''s participation is expected to attract other potential investors and charismatic carbon buyers by signaling confidence in this innovative business model and the project fundamentals.
3. Supporting private sector companies in a high impact sector: The Fund will provide finance for SME companies in a growing and highly developmental market segment.
4. Supporting growth of charismatic carbon and other impact certificate markets: IFC''s participation is expected to support increased awareness of charismatic carbon markets bringing in new participants, and develop new impact certificates, such as health certificates for clean cookstoves and water certificates for water purification systems.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

This project has been categorized as FI-2 according to IFC’s Environmental and Social Review Procedures. BIX Fund will target producers and distributors of highly efficient appliances, such as cookstoves, water purification systems, biogas digesters and solar lanterns. These activities are mostly considered medium risk activities with potentially limited E&S risks and impacts that can be addressed through readily available mitigation measures. The applicable requirements for this project are the Exclusion List and the applicable national social and environmental laws in host countries of portfolio companies and the Performance Standards.

Contacts

For Inquiries About the Project, Contact

Jeroen Blum
Managing Director
BIX Fund Management BV
Weena 690 21st Floor
3012 CN Rotterdam
The Netherlands

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Task Title & Description	Anticipated Completion Date
Nominate officers	06/30/2015
Establish SEMS	06/30/2015
Staff Training	12/27/2015
Submission of the E&S assessments conducted for the first three investments and any category A investments	02/25/2016

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