MICROCAPITAL BRIEF: BII Investing $75m in MSME Funders via Symbiotics to Enable “Green” Projects in Africa, Asia

British International Investment (BII), the UK’s development finance institution, recently subscribed to a bond issuance arranged by Switzerland-based Symbiotics in the amount of USD 75 million to be invested in 10 to 15 funders of micro-, small and medium-sized enterprises (MSMEs) in Africa, South Asia and Southeast Asia to boost “small-scale green projects and businesses.” To support the investments, BII has committed USD 520,000 in technical assistance for the retail lenders to help their clients invest in assets such as “rooftop solar panels, sustainable agriculture, energy-efficient appliances” and others. The program spans Africa as well as the following countries: Bangladesh, Cambodia, India, Indonesia, Laos, Nepal, Pakistan, Philippines, Sri Lanka and Vietnam.

BII Investment Director Jo Fry stated, “This investment will increase access to climate finance for small-scale entrepreneurs and businesses that are developing green projects. It will also increase MSME banks’ capabilities to identify and manage climate assets. BII’s intention is that this new, innovative funding structure will enable other investors to replicate and invest in this space.”

Daniel Schriber, Head of Investments at Symbiotics, added, “This innovative product will also increase the awareness of climate finance in emerging markets and support financial institutions in further developing and managing their green product range.”

Established in 1948, BII, formerly known as the Commonwealth Development Corporation (CDC) Group, issues debt, equity and indirect investments with the aim of fostering growth in “sustainable” businesses to raise living standards in Africa, Asia and the Caribbean. The institution reports total assets of GBP 7.5 billion (USD 9.0 billion) as of June 2022.

Founded in 2004, Symbiotics provides for-profit investment intermediary and business services to investors in and practitioners of MSME development as well as lenders to low- and middle-income households in low- and middle-income countries. As of December 2021, Symbiotics reports USD 2.9 billion in assets under management. The firm also performs compliance checks, credit risk ratings, social responsibility ratings, and financial and operational advisory reporting services.

By Sheen Gupta, Research Associate

Sources and Additional Resources

BII press release
https://www.bii.co.uk/en/news-insight/news/british-international-investment-and-symbiotics-partner-to-launch-first-ever-green-basket-bond-across-africa-south-and-southeast-asia/

Symbiotics homepage
https://symbioticsgroup.com

Previous MicroCapital article on Symbiotics
https://www.microcapital.org/microcapital-brief-symbiotics-invests-7-5m-in-evocabank-of-armenia-for-msmes/

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