U.S. Intl Dev. Finance Corp. (DFC) commits $5m loan to BIX Capital for SMEs debt financing in Sub Saharan Africa
The U.S. International Development Finance Corporation (DFC) has committed a $5 million loan to BIX Capital for SMEs debt financing in Sub Saharan Africa.
In addition, FMO, the Dutch entrepreneurial development bank has reclassified part of its existing $5 million commitment to mezzanine financing, showing their continued commitment to clean cooking and to BIX Capital.
The loan from DFC will be used to provide debt financing to SMEs that enable access to high-impact products such as cookstoves and water purification systems, primarily in Sub Saharan Africa. The beneficiaries will be low income households at the base of the pyramid, whose livelihoods will be significantly improved.
FMO’s commitment strengthens the capital base and allows BIX Capital to absorb additional senior debt financing from DFC. BIX Capital has a blended financing structure with a 1:2 Debt-To-Equity ratio.
The loan from DFC and the mezzanine commitment from FMO will enable BIX Capital to scale up and continue to improve livelihoods through products that support clean air, water and energy.
BIX is an investment vehicle initiated by Shell Foundation, Cardano Development and FOUNT, providing debt financing to SMEs through an innovative result-based finance structure creating access to high impact products such as cookstoves or water purification systems for low-income households at the Base of the Pyramid mainly in Sub Saharan Africa.