Toto camba
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Transcript of Toto camba
October 16, 2013
Aldaba Theater, University of the Philippines
Quezon City, Philippines
Investing in
Inclusive Enterprises
Toto Camba
ICCO-Investments South East Asia
Identity and Location
Development Framework
Strategic Objectives
Target Investment Partners
Investment Platforms 2020
MAIN POINTS
Identity and Location
Development Framework
Strategic Objectives
Target Investment Partners
Investment Platforms 2020
MAIN POINTS
• An international development organization with roots in
Netherlands.
• Engaged in cooperation which promotes Inclusive Economic
Development, Sustainable Natural Resource Management
and Social Justice
• Operate in 7 Regions, 6 countries in South East Asia and the
Pacific
Who are we?
• is the “BLUE labeled” ICCO and the
impact investment vehicle of the ICCO
Cooperation
• Provides financial investment to enterprises,
institutions and initiatives in developing
countries that have positive impact on people,
especially on the BOP, and the environment.
• 8 Regions, 8 ROs, 8 RCs
• 6 Countries in SEAP
Identity and Location
Development Framework
Strategic Objectives
Target Investment Partners
Investment Platforms 2020
MAIN POINTS
GLOBAL DEVELOPMENT FRAMEWORK
CONNECT ADVOCATE INCUBATE SCALE UP
• Peace Building
• Asset Reforms
ACCESS TO:
• Basic & Social
Services
• N.Resources
• Market
• Finance &
Investment
• Market
Development
• VCD Platforms
• Public & Private
Sector
Engagement
• Business &
Financing Model
• BDS
• Venture Capital
Support
• LP & G
• 200-800K Euros
• Agriculture &
Value Chain
Finance
• Missing Middle
Finance
• Inclusive SMEs
Sustainable Livelihood for Small Producers
Gender & Right Based Approach
Programmatic Approach + Public & Private Sector Engagement
Capacity Development
Enabling Policies Inclusive VC Viable Inclusive
Bus. Models
Sustainability
ICCO’S ROLES & STRATEGY
Fair Economic Development Framework
CONNECT ADVOCATE INCUBATE SCALE UP
• Peace Building
• Asset Reforms
ACCESS TO:
• Basic & Social
Services
• N.Resources
• Market
• Finance &
Investment
• Market
Development
• VCD Platforms
• Public & Private
Sector
Engagement
• Business &
Financing Model
• BDS
• Venture Capital
Support
• LP & G
• 200-800K Euros
• Agriculture &
Value Chain
Finance
• Missing Middle
Finance
• Inclusive SMEs
Gender & Right Based Approach
Programmatic Approach + Public & Private Sector Engagement
Capacity Development
Enabling Policies Inclusive VC Viable Inclusive
Bus. Models
Sustainability
ICCO’S ROLES & STRATEGY
Sustainable Livelihood for Small Producers
Fair Economic Development Framework
… we mind the gap
Global poverty landscape has
changed from just two decades ago,
from 93 % of poor people lived in low-
income countries (LICs).
NOW 70% (960M – “the new Bottom
Billion” ) of poor people in the world
are found in Middle Income
Countries. They don’t benefit so much
from economic GROWTH
Poverty is increasingly turning from an
int’l to a nat’l distribution problem, thus
governance and domestic taxation
and redistribution policies become
of more importance than ODA
Source: Institute for Development Studies
BIG Global Challenge
Rural Poverty Data in SEA
Country
Population
in million
(2011)
GDP per
capita
(2011)
Poverty Incidence Data (% of population)
Population living
under US$1.25
pc/day
(WB 2008-10)
Population living
under US$2
pc/day
(WB 2008-10
Contribution of Rural
Poverty to total
poverty
Cambodia 14.3 897 18.6 49.5 93.8
Indonesia 242.3 3,495 18.1 46.1 70.3
Myanmar 48.3 43.3 NA 70.4
Philippines 94.8 2.370 18.4 41.5 72.4
Vietnam 87.8 1,407 16.9 43.4 92.3
Ave (East Asia &
Pacific) 487.5 12.5 29.7
• Generally banks see agricultural credit as high risk -- long gestating, limited cash flow, poor infrastructure, no insurance, lack of security
• BIG gap on capital in the emerging market. MFIs and mainstream banks generally not addressing the “missing middle”
• In most cases the “unbanked” resorts to informal lenders that are
usually less reliable (?) and more costly than banks and other formal FIs
SMEs especially those engaged in AGRI-Enterprises Lack Access to Finance
Identity and Location
Development Framework
Strategic Objectives
Target Investment Partners
Investment Platforms 2020
MAIN POINTS
SCALE UP Agri-Based Enterprises
Viable Innovative Enterprises
Small Growing Businesses
Inclusive Financing Platforms (VCF, Agri & Rural Finance & MMF)
OUR MISSION
Identity and Location
Development Framework
Strategic Objectives
Target Investment Partners
Investment Platforms 2020
MAIN POINTS
• Registered legal business entity • If NGO, its core business should be
viable • Agri-Business, Social Innovation
e.g. Health, Education, food and security, water & sanitation, energy, climate
• Business providing appropriate financial services for small farmers and missing middle
• Business Size = SMEs • Investable level and with sound
growth plan • With social and environmental
impact
Our Target Partners
INCLUSIVE
BUSINESS?
sustainable business that
benefits the low
income communities
business initiative that,
keeps its for-profit
nature but contributes
to poverty reduction
Business that creates
sustainable livelihoods
for the poor
Finds profitable way to engage low income
segments in its value chain or business
operations
directly employs low-income people; targets development of suppliers and service providers from low-income communities; or provides affordable goods and services targeted at low-income communities.
Our IDEA of an Inclusive Business
Identity and Location
Development Framework
Strategic Objectives
Target Investment Partners
Investments Platforms 2020
MAIN POINTS
• Min of 200,000 Euros
• Max of 800,000 Euros
• Enterprises needing below the min amount shall be assisted through partner financial intermediaries
• Investment or financing support can be in a form of loan,
equity or guarantee
Investment Size per Investee
2. Through Financial Intermediaries <50K Euros for small business and small producers organizations
3. Programmatic Investment Syndication targeting Agribusiness and Innovative Enterprises that require >50K Euros
4. Direct Investment
to Agribusiness and Innovative Enterprises 200K-800K Euros
1. Guarantee for Agriculture Finance & Agribusiness
w/ Oikocredit and other local banks and FIs
to support agri-microfinance and small agribusiness (SPOs) with max
support of 400K Euros pre
sent
opera
tion
Still under the
FS Program but is now basically part of ICCO Investment
present
Investment Platforms
Platform 1: Guarantee
- Oikocredit is a paper guarantee
- 3rd Party Guarantee
ICCO Lending Partner
ICCO
Lending Partner
Bank Put Guarantee Fund
as a special placement
Interest earnings
Issues the Guarantee
1-1.5 G. Fee
calls the guarantee in case of default
Pays G. Fee -1-1.5%
Calls the guarantee in case of default
Issues the guarantee
Platform 2:
for small producers
Inclusive
FINANCE
INSTITUTION
Loan or Participation
Interest or Dividends
+ Social Returns
Social
Investor
+ Dev’t.
Financier
+ Impact
Investor
Agri-Finance in
specific commodity
Social
Innovations in
specific service
sectors
Joint Investing in
specific business
enterprise or area
Platform 3
Programmatic Investment Syndication
AgriBusiness
VC Finance
Viable
Social
Enterprise
Innovative
Enterprise
• loan or equity
• @ least 200K Euros
financing requirements
for 2 years
• Max of 800K
• 3-7 year max
investment period
Platform 4
Direct Investment
Input Suppliers
Producers
Traders
Processors
Consolidators
Buyers
VC and Agriculture Finance
Our Investment Process
Screening Preliminary
Assessment Due
Diligence
Portfolio
Mgt Exit
2-6 Months 3-7 years
KEY BUSINESS CHARACTERISTICS KEY FINANCIALS
IMPACT / RISK ASSESSMENT
INVESTMENT PROPOSITION / INDICATIVE TERMS
NAME OF COMPANY – SECTOR - COUNTRY
• Market Issues addressed/competitive edge • Entrepreneur / Management • Technology • Business Model • Impact Created
• Positive history • Financial
projection needs to be sharpened
• High, clear & quantifiable social impact
ICC
O IN
VESTM
ENT P
IPELIN
E OP
PO
RTU
NITY
CONCLUSION
• Financially – Go? • Impact – Go? • Fit to ICCO Investments – Go?
Short project BIO & Description
RESOURCE PLANNING
Strategic / Operational
Risk
Financial Risk
Social Impact
Environment Impact
• Cleaner production • Promotes environmental
protection
• Clear VM and Social & Business Objectives
• Projection based from historical performance & strong social & market orientation
€ 0
€ 100,000
€ 200,000
€ 300,000€ 400,000
€ 500,000
€ 600,000
€ 700,000
€ 800,000
20092010
20112012
20132014
2015
Revenu
EBIT
Net Income
INVESTMENT REPORT
1. General Information
2. Business Overview and Strategy
3. Impact
4. The Market
5. The Product / Service
6. Market Opportunity
7. Sales Model
8. Competition
9. Management Team
10. Advisors / Professionals
11. Milestones Accomplished
Key Financial Performance (Income Statement)
Key Financial Performance (Balance Sheet)
Key Financial Performance (Cash Flow Statement)
Key Financial Performance (Ratios)
12. Financing
13. Milestones after funding
14. Future Financing
15. Financial Projections
Key Financial Performance (Income Statement)
Key Financial Performance (Balance Sheet)
Key Financial Performance (Cash Flow Statement)
Key Financial Performance (Ratios)
16. ICCO Investments Intervention
17. Ownership Valuation
18. Returns and Exit Strategy
19. Impact Assessment
20. Risk Assessment & Mitigation
Scope of Due Diligence
sample
1) Market– Who are the target groups and what are their characteristics? How
big is the market? Competition and competitive edge of the proponent?
2) Business Model/Concept identifying the problem/s that the business
wants to address, strategies in addressing the identified problem/s, nature of the
business, and strategies to make the business viable
3) Social Impact – Vision, Mission and Goals of the business organization,
reach of the business model, present and project social impact targeted,
4) Entrepreneur – Who is the entrepreneur? Track record and capabilities of
the entrepreneur? Business management systems?
5) Financials – what are the income streams, historical financial performance
and projection, how much investment/new capital needed? Where and how will the
new investments be utilized? Who are the targeted investors/financiers other than
ICCO.
6) Identify the key success factors, risks and risks
mitigation strategy for the business
What do we want to know from your proposal?
For further exploration pls. contact
Mr. Toto Camba
Investment Manager
… we mind the gap