The International Finance Law Review (IFLR) shines light on how the world’s first stock exchange dedicated to Social Enterprises will change the face of investing. Read on as IFLR interviews IIX’s legal counsel Matt Kasdin about the Impact Exchange and what the next stage of investing will be here.
May 30, 2013
In a collaborative move to strengthen and standardize the impact investing sector, Nexii and Impact Investment Exchange Asia (IIX) are pleased to announce the transfer of Nexii’s role in Impact Exchange to IIX. With effect as from May 6 2013, IIX has taken over the cooperative management of Impact Exchange with the Stock Exchange of Mauritius (SEM). Impact Exchange aims at being a social stock exchange with significant global reach, from Africa to Asia, two regions in the most need of capital assistance for sustainable development.
Tamzin Ractliffe, founder of Nexii, said, “We are delighted at this integration, will continue to work with the SEM and IIX to ensure a smooth handover and transition, and are enthusiastic to watch Impact Exchange’s ascension to importance within the financial services industry over the next decade.”
Professor Durreen Shahnaz, Founder and Chairwoman of IIX, commented, “This partnership with the SEM to develop Impact Exchange is an important step in consolidating the interest from impact investors globally to two regions that have the most potential to impact millions of lives for the better.”
The Evolution of Impact Exchange
In 2006, the SEM successfully launched the Development and Enterprise Market to support medium-sized and growing business in Mauritius. Building upon its experience and recognition by Africa Investor (Ai) as Africa’s most innovative stock exchange in 2011 and 2012, the SEM partnered with Nexii to jointly develop the regulatory framework of Impact Exchange, collaboratively drafting listing rules that would cater towards impact investment opportunities. Impact Exchange aims at becoming a platform for the public to invest in and trade shares of social enterprises while assuring mission alignment to social and/or environmental impact. Impact Exchange is designed to be operated and regulated by the SEM. As Impact Exchange becomes operational, IIX will assume Nexii’s current role to oversee impact reporting requirements.
“Impact Exchange is a pioneering effort in democratizing access to investment information, market infrastructure and capital for both impact investors and social businesses or impact investment funds – a stepping stone towards achieving scale in the impact investment sector”, said the SEM’s CEO, Sunil Benimadhu.
Impact Exchange Moving Forward
IIX will work directly with the SEM to build upon the platform’s potential and work towards its launch in the future. Nexii will continue to support Impact Exchange by accrediting Authorised Impact Representatives through the Impact Trust, a move that will establish an independent qualification for intermediaries, with the intention of servicing social stock exchange initiatives globally.
IIX’s entry into Africa through the Impact Exchange relationship with the SEM is a strategic acquisition. “We are excited for this expansion of our footprint. IIX is currently raising capital through Impact Partners, its private placement platform impacting lives of thousands across Asia. With Impact Exchange, that impact can be multiplied to millions reaching both Africa and Asia. Impact Exchange will also allow for every citizen in this world to become an impact investor and part of the democratization of capital markets”, Shahnaz said.
“As Impact Exchange is a pioneering effort to use public markets for impact, we are excited to work with IIX given their track record of success connecting Social Enterprises to investment capital. We thank Nexii for their initiative and the passion they have brought to this project”, stated Benimadhu.
Interested Social Enterprises and investors can attend IIX’s annual Impact Forum, held in Singapore June 13-14, 2013 where more details of Impact Exchange’s operations will be unveiled. Registration and further information on the Forum can be found at www.impactforum.asia.
For further information on how to become an accredited Authorised Impact Representative, visit http://impacttrust.co.za/subscribe/ to sign-up for further information.
Nexii’s vision is of an inclusive, sustainable and ethical capital markets system that promotes prosperity for all and pays as much attention to issues of people and the planet as it does to issues of financial profit. Nexii is dedicated to building the impact investment market infrastructure and integrated intermediation services necessary to help businesses operating in sustainable sectors to raise capital and trade financial securities. For more information, please visit www.nexii.com
IIX is revolutionizing the way the world looks at sustainable economic development through the creation of social capital markets. It is operating investment platforms, developing products and ecosystems to connect socially and environmentally mission-driven enterprises with impact investors. IIX currently operates Impact Partners and Impact Incubator, two private placement platforms – the largest in the world in the impact investing space, offering social enterprises based in Asia Pacific a marketplace to raise private capital. IIX platforms have successfully raised pioneering investment capital for many social enterprises across the region. IIX’s sister entity Shujog focuses on doing impact assessments for social enterprises and plays a crucial role in the capital raising process. For more information, please visit www.asiaiix.com , www.impactpartners.asiaiix.com and www.shujog.org
Over the years, SEM has been at the forefront of innovation in the Exchange space in Africa, emerging as a reference Exchange on the African continent. SEM is today one of the leading frontier Exchanges and a full-fledged member of the World Federation of Exchanges (WFE).SEM is presently actively pursuing its internationalisation strategy, which is aimed at moving up the value-chain of products listed/traded on the SEM platform and setting the stage for the Exchange to gradually emerge as an attractive listing, trading and capital-raising platform offering international and multi-currency products. For more information, please visit www.stockexchangeofmauritius.com
About IMPACT TRUST:
The Impact Trust’s mission is to facilitate access to financial, intellectual and political capital for social and environmental solutions through research, impact finance product design, advocacy and education. It is also responsible for accrediting Authorised Impact Representatives, qualified firms and professionals in impact measurement, evaluation, and due diligence. Its work most recent includes developing a pilot for the first social impact bond in South Africa and research into stimulating SME and social business growth through taxation frameworks and legal structures. For more information, please visit www.impacttrust.co.za
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NUS Business School’s Asia Centre for Social Entrepreneurship and Philanthropy (ACSEP), led by Rob John and Pauline Tan with Ken Ito, has developed its second Entrepreneurial Social Finance in Asia working paper series – “Innovation in Asian Philanthropy”. The working paper explores the trends, innovations and strategies in Asian philanthropy and the various organizations that support entrepreneurial philanthropy, including IIX. Read on as IIX is profiled vis-à-vis other players in the region. More>>
Would you invest in a company that placed equity priority on social and monetary returns. Globally, the answer would seem to be “yes”. Within the past seven years, the United Nations backed Principles for Responsible Investment initiative has seen signatory companies jumped by more than 1,500%: there are now close to 1,200 signatories with assets under management of $30 trillion.
Please download the PDF article to read more.
October 22, 2012
Impact Investment Exchange Asia (IIX) and the Sustainable Energy Association of Singapore (SEAS) signed today a Memorandum of Understanding (MOU) solidifying joint efforts to promote the Social Enterprise (SE) space among the sustainable energy sector. This is a significant step forward in continuing both organizations’ goals of creating more inclusive energy access to the millions currently in Asia without dependable sustainable energy options.
In Asia today, over 700 million people are still without access to electricity and almost two billion people still burn wood, dung, and crop waste to cook and heat their homes. With energy demand projected to double by 2030 in Asia Pacific, much of it driven by developing economies, the time is now in advocating innovative and clean energy solutions that are reliable, accessible and affordable. IIX believes that SEs – innovative organizations that employ market-based solutions to address social and environmental challenges—are part of the solution.
The MOU between IIX and SEAS covers two major components: mutual advocacy and greater knowledge integration. IIX and SEAS will work together to mutually promote one another’s work to its main constituency bases: SEs and organizations active in the sustainable energy sector, respectively. In addition, IIX and SEAS will refer qualifying enterprises to one another. This is a concerted effort to pool more resources and actors with common goals towards finding innovative and effective solutions to a more sustainable and energy-efficient Asia.
The MOU will also encourage greater knowledge sharing between the two parties through various capacity-building workshops, enabling sustainable energy enterprises to showcase its positive social and environmental effects to investors. “There is a big role for IIX and SEAS to play in emphasizing a renewable energy company’s positive social and environmental impact just as prominently as its financial returns. Our combined efforts will bring to the forefront these companies’ contribution to a more energy-efficient and green Asia,” shares Mr. Robert Kraybill, Managing Director of IIX.
In the effort to create immediate traction, IIX and SEAS look forward to collaborating on a series of outreach events in the coming year to drive more knowledge within the sustainable energy community about the power of SEs in providing energy solutions for the poor and underserved as well as champion the role members of the energy sector can play in the socio-environmental development of the communities they work in.
SEAS, which provides a common platform for companies in the Renewable Energy, Energy Efficiency, Carbon Trading, and Clean Development sectors, is well poised to promote the concept of Social Entrepreneurship to the clean energy sector and to encourage more companies to emphasize their social and environmental impact. “This collaborative relationship with IIX will not only further SEAS involvements to support energy access regionally but also be complemented by the support received from the Energy for All Partnership programme co-Chaired by the Asian Development Bank and SEAS to target electrification of 100 million new connects and capacity building for entrepreneurs in Asia. We, along with our regional strategic partners, look forward to working with IIX to address the issues of energy poverty alleviation through this new found collaboration” said Mr. Edwin Khew, Chairman of SEAS.
IIX is revolutionizing the way the world looks at sustainable economic development in Asia through the creation of social capital markets. It is creating the platforms, products and ecosystem development to connect socially and environmentally mission-driven enterprises with impact investors. IIX operates Impact Partners, Asia’s first private placement platform dedicates to investments for social enterprises. IIX will launch its public investment platform, Impact Exchange in Winter 2012.
The Sustainable Energy Association of Singapore (SEAS), represents the interests and provides a common platform for companies in Renewable Energy, Energy Efficiency, Carbon Development and Trading, and Financial Institutions to meet, discuss, collaborate and undertake viable projects together. The Association extends its focus to include Capacity Building, Technology Strengthening and Market Intelligence assisting its members in achieving Sustainable Growth locally and regionally via enterprise development, market development, training and learning platforms.
SEAS plays a strategic role in aiding the realisation of Singapore’s vision, to be a Global Clean Energy Hub where products and innovative solutions are developed, adopted and exported. SEAS has also built strategic relations with regional clean energy industry organisations, multilaterals and key government institutions enabling collaboration opportunities for its members.
For a pdf copy of the press release, please click here.
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October 18, 2012
By: Ashley Lee of International Financial Law Review
Why impact investing is the next corporate innovator
Oxfam’s £1 billion loan to Mongolia’s Xac Leasing blurs the line between private equity funds and not-for-profit organisations.
The transaction highlights the growing trend of impact investments, or utilising private equity strategies for investments focused on the greater good. It also signals environmental, social and governance (ESG) issues becoming more important for private equity funds.
However both trends raise questions about the for-profit and non-profit status of companies, and may signal the introduction of new corporate structures.
October 17, 2012
By Asian Development Bank:
Social Economy for Poor Communities:
Social enterprises play a vital role in addressing social and environmental challenges in developing countries in Asia and the Pacific.
With a significant number of people living in extreme poverty in Asia and the Pacific, social enterprises, i.e., organizations that pursue social goals through commercial strategies, serve as a vital link to narrow the gap in the region’s income disparity.