Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Measure Better Investing in Racial Equity Beyond Aid Beyond Trade-offs Impact en las Americas New Revivalists Women Rising in India Operation Impact
Smarter Money Women Rising 2030 Finance Locavesting Inclusive Economy Regeneration Impact Tech New Power Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Industry News Impact Management Good Business Personal Finance Faith and investing Billionaires
Gender Lens Investing Women Rising in India
SDGs Climate Finance Clean Energy Innovative Finance Full Stack Capital Long-termism
Opportunity Zones Investing in place
Entrepreneurship Return on Inclusion Good Jobs Inclusive Fintech Creative economy Housing New Schooled Well Being People on the Move
Conservation Finance Farmer Finance Financing Fish
Blockchain/AI/IoT Urban Tech Food Tech Inclusive Fintech
Human Rights Democracy and Peace News and Information
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States Growth Markets
Subscribe Log In

ResponsAbility issues $175 million in notes for small business and microfinance lending

ImpactAlpha, July 22 – Swiss impact investor ResponsAbility raised $175 million from OPIC, the U.S. development finance institution, Swedish pension plan manager Alecta and Calvert Impact Capital to support small business and microfinance lending.

The capital, raised through a bond issuance, was lent to 26 financial institutions providing loans to 30,000 small businesses and 5.6 million microfinance borrowers. The institutions, from India to the Netherlands to Ecuador, lend mostly to women.

The three tranches of notes carry different risk profiles: the fixed-rate senior and mezzanine notes have a three-year maturity, while returns on the junior notes will be based on portfolio performance. ResponsAbility said the structure signaled maturity for small business and microfinance investing in emerging markets.

“Applying capital markets technology to traditional impact investing creates the potential to open this sector to a wider range of investors,” said Eric Wragge of J.P. Morgan, which supported the transaction.

You might also like...