Phnom Penh, Cambodia – Nexus for Development has disbursed the first investment of the Pioneer Facility to One Renewable Energy Enterprise Inc.(OREEi), a Philippine social enterprise specializing in deploying solar energy solutions. OREEi was selected by the Pioneer Facility for their strong social and environmental impacts, significant experience in their focus areas, and their viable business model. The Pioneer Facility is working with OREEi to directly finance a project that will replace 62 diesel generated irrigation pumps with solar-powered pumps. The identified end-users are small cooperatives of farmers based in several rural areas of the Philippines. As part of the Pioneer Facility design, the financing was offered collateral-free to be more accessible than traditional financing options.
The Pioneer Facility fund was exactly what we needed, when we needed it. Nexus and the Pioneer Facility were able to deliver their specialized loan package at a ticket size that usually has limited lenders. The loan allows us to engage in bigger projects that will fuel our growth. Their account officers were very responsive and took the time to visit both our office and the project site enabling Nexus to appreciate the social and business vision of our social enterprise and the challenges that come with finding this balance.
Erel B. Narida, President and CEO, One Renewable Energy Enterprise, Inc.
The aim of the Pioneer Facility is to provide affordable debt financing to grow the operations of impactful social enterprises. The fund specifically provides uncollateralized, working capital to social enterprises focused on sustainable energy, clean water, and sanitation-based solutions for low-income populations in Southeast Asia.
Today, the three main investors, FFEM (French Facility for Global Environment), the Lorinet Foundation, and Phitrust Asia, are bringing more than one third of the targeted capital of 6.5 million USD to the Pioneer Facility. By combining funds from recoverable grants and impact finance, the Facility is able to provide affordable debt finance to social enterprises. The aim is to support at least 20 of these enterprises over the next four years.
Phitrust Asia is very happy to be among the first investors in the Pioneer Facility. This vehicle is very needed in the ecosystem supporting social enterprises in South East Asia. Pioneer Facility finances enterprises like OREEi which provide important services to remote rural areas families and which need to address some challenges and grow before being able to convince more conventional impact investors.” – Henri de Reboul, CEO, Phitrust Asia
Photo Credit: Justin Bergendahl
For more information on the Pioneer Facility please contact:
Impact Investment Manager, Nexus for Development