INNOVATIVE FINANCE TOOLKIT
Be inspired about innovative ways to finance impact enterprises
Hot off the press: our Innovative Finance Toolkit!
Alternative Structures for Financing Early-Stage Impact Enterprises in Bangladesh
We need to redefine the terms of investments to better fit the unique attributes of impact enterprises — whether it be more patience, unconventional repayment options, or rewards for impact. In this toolkit, we want to highlight some of the alternative structures that can be used to support impact enterprises on their journey to create much-needed impact at scale. GET THE ENTIRE INNOVATIVE FINANCE TOOLKIT HERE or select individual instruments below. Here you’ll also find case studies and additional resources.
I. Equity Alternatives and Convertibles
Case Studies: Ledgy Convertible Notes Real world Examples
II. Catalytic Impact-Linked Finance Instruments: Attracting Private Investment
SIINC (Social Impact Incentives)
Additional Resources: SIINC White Paper / SIINC Explain Video & Graphs / Emergency SIINC / Devex Social Impact Incentives A New Tool for Supporting Impact / NextBillion Daring to Think Big Why It’s Time to Scale Impact-Linked Finance / NextBillion Pay-For-Success With An Important Twist
Reimbursable and Convertible SIINC
Case Studies: there are no case studies for this innovative instrument yet.
Additional Resources: SIINC Explain Video & Graphs / SIINC White Paper / Emergency SIINC / Devex Social Impact Incentives A New Tool for Supporting Impact / NextBillion Daring to Think Big Why It’s Time to Scale Impact-Linked Finance / NextBillion Pay-For-Success With An Important Twist
III. Other Impact-Linked Finance Instruments
Case Studies: IIG BOLD Contract / BNP Paribas Close Landmark Positive Incentive Loan
IV. Other Catalytic Funding Instruments: Attracting Additional Investment (Blended Finance)
Subordinated Loans as Catalytic First-Loss Capital
Case Studies: PEAK II – Providing Unemployment and Knowledge in Tanzania / Community Finance Fund for Social Entrepreneurs (CFFSE) / California Freshwork Fund Term Debt Facility / Catalytic Capital Consortium / Convergence Watercredit Investment Fund
V. Results-Based Finance Instruments for Non-Profit Organisations
Social/Development Impact Bond
Additional Resources: Government Outcomes Lab / CGD Social Finance Investing in Social Outcomes DIB / Brookings Convergence Impact Bonds in Developing Countries / SSIR DIBS There is Still No Free Lunch / OECD Understanding SIBs / Instiglio A Practitioners Guide to RBF
Case Studies: RBF Health PBC Case of Liberia / IDB PBC for NRW Reduction & Control Bahamas / World Bank Output Based Aid and Sustainable Sanitation / World Bank Maternal Child Health and Nutrition Project / XPRIZE Global Learning
Additional Resources: GPRBA / World Bank Use of PBC for Nonrevenue Water Reduction / Government Outcomes Lab PBC & RBF / World Bank RBF in Health / German Develoment Institute RBF / Beeck Center Funding for Results / USAID Pay For Results in Development / Norwegian Knowledge Center for Health Service Effects of RBF