Different investment instruments for different investors
The eco.business fund is structured as a public-private partnership (PPP), offering different capital tranches adapted to each investor profile.
Public investors, donors and development finance institutions invest in Junior Shares, Senior Shares and Subordinated Debt. These contributions are leveraged by private investors entering Senior Notes and pursuing a dual return (financial and developmental).
- Junior Shares provide the first loss-cushion for all other tranches, taking the first hit on any losses. Only if they are depleted will Senior Shares be exposed to further losses (if any), followed by subordinated notes and loans. The Senior Notes rank senior to all tranches.
- A series of limits ensures a minimum level of protection for each tranche.