Linklaters advises GreenArc Capital on pioneering blended finance transaction for social impact

Linklaters acted as transaction counsel to GreenArc Capital Pte. Ltd. (GreenArc), a Singapore-based impact investment and analytics fintech company, in relation to the issuance of US$5m9.00% Impact Bonds due 2028 by Indo-Pacific Liquidity Facility Pte. Ltd., and a corresponding loan from the United States International Development Finance Corporation (DFC).

This is an innovative blended finance transaction combining concessionary development capital from the DFC with commercial debt raised through a private bond issuance. It aimed towards mobilising investments towards priority financing areas to create positive social and economic impact in emerging markets, including Cambodia, India, Indonesia, the Philippines, Sri Lanka and Vietnam. This transaction represents a significant advancement in sustainable financing in the region, giving microenterprises and their financial ecosystems in the Indo-Pacific region access to US Government resources through an innovative public-private approach. This initial transaction has set a benchmark for further future blended financings to be conducted in the region.

The Linklaters team was led by capital markets partner Jonathan Horan, with support from counsel Phill Hall and associate Alwyn Loy.

Singapore Managing Partner Jonathan Horan commented, “This transaction sets a new benchmark for blended finance in Asia and reflects our capability to support our clients in path-breaking initiatives. It is rewarding to see a successful deal that not only presents a novel financial instrument in Asia but also delivers positive social impact.”

This successful transaction further solidifies Linklaters’ expertise in supporting clients with navigating innovative financing structures and executing complex and socially responsible capital markets transactions.