Tapping the Indian diaspora: The future of development finance? | Devex

Tapping the Indian diaspora: The future of development finance? | Devex: "The strategy has been to engage a new set of stakeholders — in this case the Indian diaspora.

The vehicle for investment will be the Calvert Foundation’s standard community investment note, though it will be branded and marketed toward the Indian diaspora community. The note has a 20-year track record of performance and is currently held by more than 5,000 investors.

Investors can purchase the note either through their investment adviser or through the Calvert Foundation’s online platform vested.org, where people can invest in a note for as little as $20.

The note will be used to buy debt from Indian financial institutions, which will then lend to social businesses in key sectors like health, food security, education and financial inclusion.

“How we approach our investing, broadly, is impact first and last,” said Jennifer Pryce, president and CEO of the Calvert Foundation.

That means any potential investment goes through a social screening even before the due diligence and financial screenings. Social impact is reported alongside financial basis on a regular basis.

In conjunction with the Calvert Foundation note, USAID’s Development Credit Authority will provide a credit guarantee for at least $50 million to support Indian financial institutions which provide funds to social businesses that target the base of the pyramid."



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