Private Debt / Responsible mesofinance for human development and dignity
This new compartment is aimed at replicating the same investment strategy as the compartment “BBSS-2 Social Impact I”, launched in June 2018 and closed to subscription, makes it possible to participate in the development of SMEs and cooperatives of production in emerging countries which are suffering a difficult access to credit from commercial banks. The funding provided helps financing working capital needs and fixed assets.
The compartment is drawing advantage of the on-going exposure of our partner in Africa (Ivory Coast, Cameroon) and in Latin America (Ecuador, Mexico).
Five investment themes are targeted : food, education, medical care, community services and financial inclusion.
Key data:
First closing :
2nd semester 2021 (for info. the previous compartment "BBSS-2 Social Impact I" is managing € 6.575.000)
First closing :
2nd semester 2021 (for info. the previous compartment "BBSS-2 Social Impact I" is managing € 6.575.000)
Yield:
in the range 4,5 to 5,5% annually (like in compartment "BBSS-2 Social Impact I)
Maturity:
2nd semester 2026
Risks and guarantees:
currency, countries and counterparty risks
guarantee coverage at 100% (real estate mortgage ; assignement of assets ; cession of rights on purchase orders)
Place:
Latin America ; Africa
Your impact ?
- Focus on the human capital development and protection of dignity of the persons. Main selection criteria:
– SME taking care of their employees through fair wage policy, extra benefits in-kind, skills enhancement supported by training, etc…
– SME providing products and services of first need to low-income populations.
- Examples of achievement of the previous compartment “BBSS-2 Social Impact I ” (31/05/2021):
- more than 100 SMEs financed in sectors such as food ; primary and secondary schools ; public transportation by coaches ; first aid medical care (maternity, radiology, orthopaedics…)
- all SMEs must comply with the SDG*8 (decent work and sustainable growth) * Sustainable Development Goals for 2030 (developped by the UNO)
Local financial partners:
Ivory Coast : CREDIT ACCESS (microfinance and SME lending)
Cameroon: CECIC, MUPECI (microfinance and SME lending) and BCPME (state-owned bank for SMEs)
Ecuador: PRAGMATIQUS (factoring company)
Mexico: GARANTIA (leasing company)
Who is our partner? :
- Luxembourg-based Private Debt company which has implemented ambitious ethics principles in financing of not- listed growing SMEs in emerging countries,
- that grants direct loans ranging in the range € 50,000 to € 400,000 with a maturity up to 48 months.
- Each loan is co-financed (up to 80% by our partner) with a local financial (at least 20%).
- The Investment Committee is advised by well-experienced investors and various technical experts (in topics like ethics for instance)
