C3 Catalytic Capital Consortium Due Diligence Call · CRS Impact Investing Goals Provide Overall...
Transcript of C3 Catalytic Capital Consortium Due Diligence Call · CRS Impact Investing Goals Provide Overall...
Blended Finance
Beth Collins, Managing Director, Impact Investing Catholic Relief Services FaithInvest: Impactful Cooperation January 17, 2020
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Transformational Change at Scale
In over 110 Countries / 7,000
Staff / 1,500 Partners
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CRS Impact Investing Goals
Provide Overall Guidance, Technical Advice and Capacity Building for CRS Staff on Private Sector Engagement
Grow % of Reserve Invested in Impact Funds
Influence through advocacy and partnerships, Vatican engagement
Lead expansion of investment vehicles, program-aligned investments and deployment of innovative financing mechanisms
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Blended finance is defined "as the strategic use of development finance and philanthropic funds to
mobilize impact investing / private capital to emerging and frontier markets", resulting in positive results for
both investors and communities
Needs are Huge – Private Capital is Essential
The UN estimates that $5-7 trillion is needed annually to achieve the Sustainable Development
Goals (SDGs) by 2030.
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Approximately $145 billion of official development assistance (ODA) was provided in 2017.
Reaching the SDGS will require new capital and mechanisms to help close the gap.
Local Businesses Provide Essential Resources to Communities
• Every nine out of ten jobs in the developing world are created by the
private sector, especially, micro- and small businesses
• Local businesses continue functioning after donor-funded programs end
• Increasingly, private capital is available to support business growth
– 70% of global output growth came from developing economies in 2010-15
– Consumer spending growth estimated to be 3x faster than developed markets until 2030
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Goods / products Services Markets Incomes / jobs
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Integrated Solutions are Essential
Humanity is faced not “with two separate
crises, one environmental and the other
social, but rather one complex crisis which
is both social and environmental.
Strategies for a solution demand an
integrated approach to combating poverty,
restoring dignity to the excluded, and at
the same time protecting nature.”
– Laudato Si, Section 139
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Climate Impact on People
The way climate change affects the various aspects of food security (food availability,
access, utilization and stability) are complex.
increase in the frequency and intensity of extreme climatic events such as
heatwaves, droughts, storms, cyclones, hurricanes and floods;
decrease in the availability of freshwater resources;
impacts of temperature increase and water scarcity on plant or animal physiology;
rise in sea-level and flooding of coastal lands, leading to salinization and/or
contamination of water, agricultural lands and food;
water and food hygiene and sanitation problems;
changes in plant and livestock diseases and pest species and
damage to forestry, livestock, fisheries & aquaculture
Source: CGIAR Big Facts on Climate Change, Agriculture & Food Security (CCAFS)
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Provide a reliable supply of safe water and sanitation services to under-served urban and rural households in Latin America (and beyond)
MISSION
Mobilize technical support and financial capital for Water Service Providers to upgrade and expand water and sanitation services in under-served communities
VALUE PROPOSITION
A SOCIAL ENTERPRISE MODEL TO DELIVER SUSTAINABLE WATER AND SANITATION SERVICES
Technical services help unlock financial capital and enable WSPs to effectively manage water and sanitation services
Blended Finance Solution Led by CRS
ATS - Philanthropy
ASC - Investment
Blended Finance
– impact!
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Azure
CRSBIDLab
LocalFinancial
Institutions
TOTAL
ImpactInvestors
OPIC
LocalTAProviders
(Azure S.A.)
CRS Established in 1943, reaching
over 130 million people across
110 countries and deploying
nearly $1B annually, with 60
years experience in Latin
America and the Caribbean.
IDB Lab IDB Group is the leading source
of development finance for
Latin America and the
Caribbean having worked in the
region for 60 years across 26
countries.
TOTAL Impact investment firm focused
on bringing to market high
quality investment products
that address basic human
needs.
OPIC The United States
government’s
Development Finance
Institution with more than
45 years experience in the
region.
Calvert Impact Capital
Mercy Investment
Services
Azure Partnerships Leverage
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New Loans
Interest & Principal
Profit Sharing
Step 1:
ATS partners assess water and sanitation systems,
develops investment plans and provides long-term
technical support to WSPs
Step 2:
Investors finance loans through ASC and FIs;
receive repayments from successful portfolio of
projects
Step 3:
Investments result in greater WSP cash flow, enabling payments of
debt service and further capacity enhancements
Step 4:
WSPs repay loans from ASC, allowing
repayments to investors, more loans to WSPs, and
further funding of ATS
Azure Source Capital: Flow of Funds
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Impact Investing & Social Enterprise Working Group
21st General Assembly – Rome 23-28 May 2019
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Third Vatican Conference on Impact Investing
Scaling Investment in Service of Integral Human
Development
Strategic Platform 3: Pathway out of Poverty
Thank you!
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