GreenArc Capital collaborates with the US DFC on blended finance transaction for social impact

The Indo-Pacific Liquidity Facility aims to accelerate private investments towards priority financing areas to create positive social and economic impact

SINGAPORE, December 12, 2023 /EINPresswire.com/ -- GreenArc Capital has partnered with the U.S. International Development Finance Corporation (DFC) and US Agency for International Development (USAID) Regional Development Mission for Asia (RDMA) on the Indo-Pacific Liquidity Facility (IPLF), a USD 30 million social impact product issued on November 30, 2023. DFC’s $10 million loan commitment will mobilize $20 million from private investors. IPLF is aligned with micro segments of the economy with a focus on increasing credit through financial intermediaries, such as fintech lenders, NBFCs and MFIs, to foster greater financial inclusion.

IPLF is an innovative blended finance transaction combining concessionary development capital from the DFC with commercial debt raised through a private bond issuance with the objective of accelerating investments towards priority financing areas to create positive social and economic impact. This unique structure of IPLF facilitates greater ease of mobilization of private sector capital towards sustainable investments in emerging markets, including in Cambodia, India, Indonesia, the Philippines, Sri Lanka and Vietnam.

As part of the Global 2X Challenge, IPLF’s investments will support women-led businesses and females operating in underserved and marginalised communities by providing affordable and accessible financing to improve livelihoods. GreenArc's impact analytics solution, impactGINI, will provide impact measurement and reporting for the 5-year duration of IPLF, bringing transparency and accountability on the impact created through the transaction.

GreenArc is an impact investment and analytics fintech headquartered in Singapore. Their technology SaaS platform, impactGINI, helps measure and report the social and environmental impact of debt investments, including credit, loans and bonds, to increase the flow of capital towards sustainable investments.

Bikram Chaudhury, Chairman, GreenArc Capital, said, “We are delighted to have collaborated with DFC in bringing the IPLF blended finance transaction to the market. IPLF is a capital markets debt transaction offering both measurable positive social impact together with market financial returns that catalyses private sector investment to development markets.“

Meeta Misra, APAC Head / Director of Impact, GreenArc Capital, said, "IPLF is a new initiative that comes at a time when the region is facing unprecedented challenges, from the lingering fall-out from the COVID-19 pandemic to rising economic inequality and climate change. Against this backdrop, IPLF is well-positioned to address the region's pressing financing needs while ensuring that the investment creates developmental impact."

James Polan, Vice President of Office of Development Credit, DFC, said, “DFC is proud to work with GreenArc Capital to help expanded access to capital through capital markets for small businesses in the Indo-Pacific, especially those businesses owned or led by women. DFC is committed to providing much needed liquidity in the market to close the financing gap and help small businesses in the region overcome barriers to financing.”

Steven Olive, Mission Director at USAID’s Regional Development Mission in Asia, said, “This partnership with GreenArc represents an innovative new public-private approach to combining U.S. Government resources to access the hardest-to-reach beneficiaries, including microenterprises and the financial institutions that support them, with the combination of technical and financing support that they need. These microenterprises are the small family businesses and the local banks that embody Main Street and, over time, lift local communities from poverty.”

Mandeep Nalwa, CEO Asia and Middle East, Taurus Wealth Advisors, said “As a firm committed to managing and supporting the entire spectrum of wealth management needs through a comprehensive suite of in-house and partnered offerings, Taurus is delighted to bring the first blended finance impact asset to our clients in partnership with GreenArc”.

In this transaction, law firm Linklaters Singapore acted as transaction counsel on the bond issuance and IPLF structure, Taurus Wealth Advisors Pte. Ltd. are the Investment Manager and GreenArc Capital Pte. Ltd. are the Investment and Impact Advisor. The Intertrust Group (a CSC Company) in Singapore are Fiscal Agent and also provide SPV administration services to IPLF.

Meeta Misra
GreenArc Capital
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