The Pioneer Facility will provide affordable debt capital for social enterprises producing and distributing sustainable energy, clean water, and sanitation solutions to low-income populations in Asia.
With the Pioneer Facility, Nexus for Development is raising 6.5 million USD to capitalize an innovative fund to support at least 20 social enterprises over the next four years. The Pioneer Facility will combine funds from grants, recoverable grants, and impact finance to provide affordable loans to these enterprises.
The Pioneer Facility will invest in social businesses which meet the following criteria:
- Technologies: clean energy, clean water and sanitation technologies benefiting low-income populations, such as clean cookstoves, solar, water purification and waste-to-energy systems;
- Geographies: initial focus on Asia;
- Impacts: products and services must contribute to the fight against poverty and climate change;
- Organization and financing: growth-stage enterprises that have demonstrated the commercial viability of their business model and can demonstrate a strong business case for future growth.
General loan terms
The Pioneer Facility’s Investment Committee will review all applications and determine final loan terms, but the following are the general terms of a Pioneer Loan:
- No collateral required
- Funds may be used for operating or capital costs for growth
- 150-500,000 USD
- 10% annual interest
- 3 to 5 years term
- Loans disbursed in tranches
Nexus’ key results since 2011
- More than 16 projects supported, including six registered or pending registration under a renowned certification body (Gold Standard);
- Over 2.3 million carbon credits issued and sold, worth 8.5 million USD in project finance;
- Management of three debt facilities with over 15 deals closed.
If you are a social enterprise that meets the criteria, contact Nexus for Development for a loan application.