IBG wants to work with implementing partners to make a real impact on the world's biggest development challenges. To do so, we need to use every tool at our disposal. We believe that impact investing is one additional tool that has tremendous potential. In wanting to have as many projects made investment-ready, IBG offers excellent investment appraisal services.
Investment Analysis: Modeling and Evaluations
These services include the following:
Construction of transactional financial models from the perspectives of investors (commercial viability) and lenders (bankability), and computation of key financial ratios (IRR, NPV, DSCRs, LLCRs etc.)
Review of project documents and ensuring that information in documents are in proper alignment with the presentations in the project financial model
Construction of sensitivity analysis and risk simulation on transaction models, in line with the bank’s credit risk policy and guidelines as well as in proper alignment with the contracts (EPC, O&M, term sheet, PPAs etc.)
Development of an integrated economic model for estimating the socio-economic analysis, and providing an assessment of development outcome(s) and stakeholders impact assessment
Preparation of project information memorandum for lenders and other stakeholders - as part of due diligence
Investment Analysis: Advisory & Transaction (Re) Structuring
These services include the following:
Identifying key weaknesses in transaction structure and client’s exposure to the contemplated transaction, and providing advisory to client on the pros and cons of a diverse structuring options (including terms in the debt financing, and optimal pricing, or level of subsidy if relevant)
Identifying key risk factors and risk scenarios to be considered for the project during development stage and project appraisal stage
Proposing financial solutions for enhancing the attractiveness of project and/or maintaining the financial sustainability throughout lifetime of the project (optimal output pricing in parallel with optimal debt covenants in financing term sheet)
Supporting internal stakeholders on calls and meetings with external clients as required
IBG has the capability to deliver services on the following types of transactions: project finance (private or public-private partnership), results-based financing, blended finance and corporate loan deals. International development agencies are approached for grant financing that can be used for early-stage development costs, technical assistance, and advisory roles.
To complement the investment appraisal work in getting projects investment-ready, IBG also offers many other services:
Organizational Assessment and Training
Improving organizational efficiency requires strong leaders who are willing and able to tackle tough challenges. To help your organization foster a culture that produces results, IBG offers:
Appreciative Inquiry
Adaptive change leadership assessment/leadership coaching
Lean Six Sigma/Lean Experimental training
Leadership mentoring
Systems Change in Social Sector
IBG's accredited partnership brokers help coordinate the unique capabilities and resources of partners and provide:
Structuring of appropriate incentives and financing
Performance management systems
Impact measurement/evidence-based monitoring
Agent-based modelling
Technology
Technology plays a critical role in addressing many challenges in developing countries. IBG works with technology companies to improve:
Outcomes through the use of artificial intelligence
Distribution of benefits
Program performance management
Efficiency through the use of blockchain technology
Government Funded Social Development Programs
In addition to program investment appraisal and risk analysis, IBG works with all levels of government on new programming approaches to improve development outcomes. Click here for more information
Innovative Finance
We work with implementing organizations, outcome payers and investors to identify the right financing instrument. We can provide:
Feasibility study using an integrated financial and economic appraisal
Investment analysis that examines risk, return, and impact
Development of business case and term sheet
Impact Evaluation
IBG works with partners, based on their objectives, to select the best evaluation method:
Observational methods
Quasi-experimental (difference-in-difference, regression discontinuity, matching)
Experimental (randomized selection methods – RCT)
Small & Medium Enterprise Development
IBG works with social entrepreneurs, as well as small and medium businesses. We work with them to:
Conduct a feasibility study
Develop a strategy and business case
Identify investors and negotiate terms of investment
Structuring investments
Strategy Development
IBG works with the senior leadership team to help set priorities and improve organizational efficiency towards achieving intended outcomes and other results. We do this by:
Providing professional and customized facilitation
Creating a systematic process to determine the best means to achieve objectives
Using this process to identify a select set of activities for a unique value to the organization
Focusing resources to maximize net social benefits
Special Projects
IBG is working with partners to eradicate and eliminate certain NTDs and other infectious diseases. IBG's expertise in finance, economics and performance management is allowing them to be a critical part of the team effort. Click here for more information.
The Sustainable Development Goals (SDG) and metrics were developed to build a common vision and related actions across communities and governments around the world. Impact Bridges Group is working with partners in Canada and abroad to make the SDG goals a reality in as many communities as possible.
Career Impact Bond
The Career Impact Bond (CIB) is a financing model that allows for access to quality, industry-recognized career training to people who are vulnerable and marginalized. These people often face barriers to education and meaningful employment. The CIB is based on a student-centered income share agreement (ISA) that allows students to enroll in training with no upfront costs. It works like this:
Impact investors provide catalytic capital to training providers, based on a conditional contract, to cover upfront training costs and critical support services for typically underserved students.
Students enroll free of charge, persist and graduate. Those who gain meaningful employment repay program costs as a fixed percentage of their income, capped at a set dollar amount and for a certain period of time. And those who don’t obtain and maintain meaningful employment following graduation pay nothing.
Impact investors and training providers share any payments, based on the conditional contract, received from students who find good jobs and achieve increased economic mobility. This aligns incentives and ensures all parties are focused on student success.