Navis Asia Credit Fund LP

Development impacts

• Local economic growth

  NACF will enable the access to debt-funding for 12 to 15 companies in SE Asia, where such SMEs still face challenges in finding appropriate funding. Steady employment effects are expected, however job quality will be a key aspect, so companies will be expected to adhere to IFC performance standards, ILO core principles and governance best practices (Anti-Bribery & Corruption, AML, CFT and Whistleblowing).

• Private sector consolidation/innovation

  The Fund will bring a novel debt instrument that will have ESG-linked performance covenants embedded in its structure in order to incentivise borrowers to implement ESG best practices. If necessary, Navis can capitalise on its extensive track-record and knowledgeable teams to support businesses to develop their networks, grow and achieve operational efficiency, while remaining sensible on ESG matters.

• Fight against climate change

  Climate Finance will be a core aspect of the investment strategy, with the objective to invest 60% of the fund in projects qualifying as climate finance on best effort basis. The manager has developed a corresponding Climate Policy and Guidelines in line with international standards.

• Promotion of ESG best practices

  Navis is leading by example, already adhering to internationally recognised ESG standards (UNPRI, IFC PS, ILO) and being a member of the IFRS Sustainability Alliance and part of the ESG Data Convergence Initiative and its Private Credit Working Group. Portfolio companies can benefit from an extensive team of ESG professionals that are specialised in various key aspects (ESG, internal audit and compliance, health and safety, as well as human capital).

• Financial additionality

  BIO, in combination with the SDG Frontier Fund, and together with IFC, BII, Norfund, and Sifem, had a catalysing role in helping the fund reach its first closing, at USD135 M, and in stimulating further private investor interest. BIO will be indirectly providing highly sought-after flexible debt funding to underserved borrowers in Emerging Southeast Asia, for which access to bank financing remains restricted.