What

Caspian Impact Investments (CII) provides debt finance to professionally managed, high growth financial institutions and small and medium enterprises in India that solve problems across high impact sectors, such as food and agriculture, clean energy, healthcare, education and financial inclusion.

Such enterprises often struggle to access debt finance because of their business and growth models - such as being asset light or strategically choosing to grow first with adequate support from institutional equity investors. As a result, such professionally managed companies end up raising external equity for meeting even the working capital requirements. This leads to accelerated dilution of entrepreneurs’ shareholding before the company reaches full potential. CII provides customised debt finance enabling professionally managed companies to grow, without requiring the entrepreneurs and existing investors to dilute their shareholding. 

How

CII provides a variety of debt products, including senior secured debt, senior unsecured debt and subordinated debt in the form of loans or debentures. They also invest in securitisation transactions and commercial paper. CII lends to financial institutions and to small businesses, but not to retail or individual customers.

The facilities provided are broadly of two types Term Loans (with amortising or bullet repayment) and Lines of Credit (with flexible drawdown and repayment).

Any credit facility provided by CII is normally secured with inventory or receivables. Collateral mortgage is normally not required. Credit without security, i.e. unsecured loans could be extended in select cases, depending on the credit rating of the borrower (investment grade) or based on the specific context. Non-investment grade borrowers would normally be required to offer security in the form of charge over current assets, such as receivables and inventory.