BoP Impact Exchange Fund

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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”).