The Currency Exchange Fund (TCX) contributes to reducing currency risks for local economies by hedging these risks in transactions between international investors and their domestic clients in frontier markets. One of the main drivers of TCX’s added value is it’s ability to better manage portfolio diversification as a pool, with contributions from multiple sources.
Frontclear is a financial markets development company focused on catalyzing stable and inclusive interbank markets in emerging and frontier markets. Frontclear facilitates access to financial markets for local institutions to local and global markets through the provision of credit guarantees to cover their counterparty credit risk.
GuarantCo encourages infrastructure development in low income countries through the provision of credit guarantees that enable infrastructure projects to raise debt finance
ILX is setting up an Emerging Market (EM) focused private credit fund that will invest in a diversified portfolio of loan participations originated and structured by bilateral and multilateral Development Finance Institutions (DFIs). These hard currency denominated loan participations provide medium and long-term finance to projects and companies across core sectors, such as: infrastructure, renewable energy, agribusiness, manufacturing and financial institutions.
BIX is a pooled investment vehicle that will provide flexible debt financing to its investees through the innovative mechanism of impact pre-finance. The provision of loans is designed to help investees overcome fundamental market barriers that prevent the wider dissemination of essential household products, such as cookstoves in base-of-pyramid markets.
Water Finance Facility
The Water Finance Facility (WFF) mobilizes large-scale domestic private investment from institutional investors such as pension funds and Insurance companies in support of countries’national priority actions on adaptation and mitigation in the water sector, thereby also contributing to ensure availability and sustainable management of water and sanitation for all. It seeks to coordinate this finance with public funding and international impact investments to help bridge the investment, infrastructure, and sustainability gaps countries are facing.
The Fund aims to create maximum impact on protecting forests and promoting sustainable agriculture, whilst improving rural livelihood through and beyond its own existence. To create maximum impact in the longer-term, the Fund will target initiatives and deals that have longterm viability, and will undertake transactions in a wide range and combination of crops. At the same time, it will create a well-diversified portfolio of investments across countries, crops and currencies.
Imfact is a multi-country fintech initiative, using factoring to provide affordable working capital financing for SMEs in Kenya, Morocco and Peru.