BIX Capital lands $5m commitment from DFC

The U.S. International Development Finance Corporation (DFC) has committed a $5 million loan to BIX Capital. In addition, FMO, the Dutch entrepreneurial development bank, has reclassified part of its existing $5 million commitment to mezzanine financing.

BIX Capital is an Amsterdam-based investment vehicle initiated by the Shell Foundation, Cardano Development and FOUNT to provide 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 people at the base of the pyramid in sub-Saharan Africa.

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.

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