CFC invites external consultants to structure its new Commodity Impact Investment Facility
The CFC is inviting external consultants to support the organization in structuring its Commodity Impact Investment Facility (CIIF). The CIIF would be a new instrument developed by the CFC to facilitate the participation of private and public investors in projects operating in global commodities value chains, in developing countries.
For more details on this Request for Proposal, which will close by 16 November 2020, can be found on the Term of Reference (ToR) below:
Currently, CFC financing is accessible to small and medium enterprises (SMEs) operating on the commodity sector through an Open Call for proposals, which is published twice per year. The CFC targets projects in the niche of up to USD 1.5 million, where, due to high costs, and high risks both public and private financiers are not forthcoming.
Recognizing the potential to increase its impact in achieving the SDGs and in contributing for the sustainability of the organization, the CFC is exploring the possibility of setting up the Commodity Impact Investment Facility (CIIF). This would allow the CFC to attract more resources of impact investors to projects meeting the goals of the CFC, and become the leader of impact investing in the commodity sector.
The pipeline of projects developed by the CFC through the Open Call is already regarded with great interest by the global impact investing community, particularly by impact investment funds. CIIF is intended as instrument to bring new private and public investors to its projects, other than through current co-financing schemes which face constraints in size, scope, and operational flexibility of projects.
The proposal for setting up the CIIF aims to address these limitations by creating a transparent channel for impact investors to enter CFC projects. The CIIF basic rationale is to combine the CFC experience and expertise with funds from impact investors to address the fundamental issues affecting the development of successful SMEs in global commodity value chains.
To properly structure this Facility, there are a number of practical issues that need to be addressed, such as:
- Defining the goals and investment mandate of the CIIF;
- Developing the Investment process of CIIF and its integration with the operations of the CFC;
- Designing the Governance of CIIF and its legal structure;
- Developing the Investment Memorandum and assisting in the fundraising efforts for the CIIF.
For this reason, the CFC is inviting external consultants with the required qualifications and experience to support the CFC in identifying, investigating and addressing all the issues for setting-up the CIIF. The consultant would be responsible to guide the CFC in all the steps required to structure the CIIF and to assist the CFC in attracting the investors for the facility.
The deadline for submitting a proposal is 16 November 2020.