With the Pioneer Facility, Nexus for Development brings new opportunities to social enterprises who are positively impacting poverty and climate change. It is an innovative fund providing working capital for producing and distributing sustainable energy, clean water, and sanitation solutions to low-income populations in Asia and Africa.

What is the Pioneer Facility?

The Pioneer Facility is an innovative debt fund combining funds from grants, recoverable grants and impact finance to provide working capital loans to social enterprises. The blend of finance is the key element of the facility, which will mitigate risks while providing affordable debt.

The range of finance is on average between $150 – $450K USD.

We do not finance pilot or demonstration projects. Our loans are aimed to scale companies with a track record of success.

What are the terms of the loan?

  • No collateral required
  • Funds may be used for operational or capital costs
  • 10% annual interest, 3-year maturity
  • Loan is disbursed in tranches
  • Loans will be disbursed in USD, local currency loans will be considered on a case by case basis

What are the criteria to apply for the Pioneer Facility?

 

Social enterprise model

Your organization uses market-based approaches to create social and environmentally
conscious goods and services with a medium-term vision of financial sustainability

 

 

Growth stage finance

You are seeking and capable of managing a $150k – $450k loan agreement. Your organization has completed pilots, has a business plan, and is ready to scale its activities.

 

 

Geographies

You operate in Southeast Asia. We will also consider strong cases in Africa and in partnership with other financiers working in your country of operation.

 

 

Social Impact

Your products and services must contribute to the fight against poverty and climate change

 

 

Technologies

Clean energy, clean water and sanitation technologies benefiting low-income populations, such as efficient cookstoves, solar, water purification, biogas, waste management and waste-to-energy systems.

 

The Pioneer Facility’s Investment Committee will review all applications and approve final loan terms.

How does our due diligence work?

  • The Investment Committee will either recommend proceeding or reject the opportunity. The decision and reasoning of the committee will be provided to the enterprise in writing.
  • Investments will be monitored through agreed reporting frameworks. The Facility aims to assist enterprises improve monitoring and evaluation

Who are the investors?

The Pioneer Facility is raising $6.5M USD of capital.
The fund is already operational with first commitments of our main investors below:

 

The French Facility for Global Environment / Fonds Français pour l’Environnement Mondial (FFEM) is a bilateral public fund initiated by the French Government in 1994. The FFEM co-finances projects that encourage the protection of the environment in developing countries.

                     

Oyun Foundation is a private family foundation based in Switzerland and Singapore that aims to support pioneering, impactful and sustainable initiatives that promote education, employment and access to clean water and energy for vulnerable communities in Mongolia, South East Asia and France.

 

 

Impact investment is about investing in promising enterprises which can scale, make profits and have great social or/and environment impact. Building on Phitrust experience during 10 years in Europe and Africa investing in 26 social enterprises and the presence in South East Asia of one of its investment committee members