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Core financing partner for financial institutions

responsAbility is one of the world’s leading providers of debt and equity financing to non-listed financial intermediaries in emerging economies. responsAbility acts as an efficient and reliable partner to microfinance institutions and banks that serve micro, small and medium-sized enterprises. It has a strong network and in-depth knowledge of capital markets, hedging and structuring, and is thus able to offer a broad range of tailor-made financing solutions.

Financing for financial institutions

Investment criteria

Eligibility for investment is based on the following criteria:

  • Total assets of at least USD 5 million (USD 20 million for equity investments)

  • Financing requirements of between USD 500,000 (USD 2 million for equity investments) and USD 40 million

  • A business track record of a minimum of three years

  • A commercial focus and a sustainable business model

  • Ability to report monthly key financials and audited annual accounts

Offering

responsAbility provides tailor-made financing solutions to microfinance institutions and small business banks:

  • Senior debt financing: Mid-term to longer-term funding, usually unsecured, in various forms to meet specific needs (loans, notes, term deposits); tenor and amortization schedule in line with business needs
  • Short-term debt financing: Short-term and bridge financing for institutions that have immediate liquidity needs
  • Subordinated debt: Growth capital in the form of sub-ordinated debt or hybrid capital

Financing for financial institutions active in financing energy efficiency or renewable energy projects

Investment criteria

Eligibility for investment is based on the following criteria:

  • Compliance with the above-mentioned general investment criteria for financial institutions

  • Financing of energy efficiency or renewable energy projects as an integral part of the business plan (ideally with an existing a track record in lending in this segment)

  • Existing social and environmental risk management system or willingeness to implement such a system

  • Internal ability to report on energy savings of financed projects, or willingness to build such ability

Offering

responsAbility provides tailor-made financing solutions to financial institutions active in financing energy efficiency or renewable energy projects:

  • Financing between USD 5,000,000 and USD 30,000,000

  • Mainly senior unsecured debt, though subordinated and even risk-sharing facilities are available

  • Maturities between 5 and 7 years, in selected cases longer maturities are feasible (in line with underlying financed projects)

  • Technical support on product design, marketing, and/or impact reporting

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