Industree Foundation and Montcalm announce that they have successfully closed their first foreign currency loan to GreenKraft Producer Co. (GK) in India. The investment was made by Montcalm clients through the Industree LIV Note.
Industree creates regenerative entrepreneurship in farming and creative manufacturing through the establishment and support of women-owned enterprises. Industree aims to provide employment and social empowerment for 100 million women worldwide.
The Industree LIV Note (Loan for Impact Velocity) is a vehicle created in a collaboration between Montcalm and Industree Foundation, offering the opportunity for philanthropists to invest in companies advancing social opportunity by providing essential working capital.
This LIV Note is designed specifically as a way to invest philanthropic capital from Donor Advised Funds (DAFs). The Industree LIV Note is high impact because it carries currency risk, while offering reasonable interest rates to the borrower, which are difficult to attain from domestic sources.
A DAF is a charitable vehicle in the US that allows philanthropic money to be either granted out or invested in positively impactful for-profit companies for an investment return. The Industree LIV Note carries a target interest rate of 3% (subject to currency risk) returned to the DAF, thus growing the money available for more impact investments and charitable grants.
Industree and Montcalm are proud of this groundbreaking investment vehicle which provides much-needed working capital to women in India at an interest rate that is nearly 70% less than loans available to them domestically. The beneficial tax implications and evergreen nature of DAF capital also make this transaction attractive to charitable investors, creating a win-win scenario for all stakeholders involved.
With this proof-of-concept LIV Note completed, Montcalm and Industree plan to replicate the model to create opportunities for individuals to invest in more Industree companies and other similarly impactful and inspiring companies worldwide.
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