Unlike a traditional stock exchange, IIX focuses exclusively on Social Enterprises providing:
This is achieved via two platforms:
Impact Partners – launched on 31 March 2011 – is an exclusive network where Impact Investors are given access to business plans and introduced to Social Enterprises seeking private investment capital. The online platform is a dedicated matching service for investors interested in making private investments in pre-screened Social Enterprises that match their investment criteria. Unique to Impact Partners is the fact that the Social Enterprises on the platform have been assessed on their social impact and financial capacity through a market readiness assessment framework. Investors can be assured of high-level access to a possible investment opportunity. All transactions resulting from an introduction on the Partners network are executed privately.
Visit the Impact Partners site: http://impactpartners.asiaiix.com
Like a traditional stock exchange, Impact Exchange will provide liquidity to investors by supporting listing, trading, clearing and settlement of securities, issued by social enterprises. IIX anticipates launching Impact Exchange in 2013.
Once operational, Impact Exchange will allow investors to purchase and trade shares issued by for-profit Social Enterprises and bonds issued by either for-profit or not-for-profit Social Enterprises:
- For-profit Social Enterprises will access equity capital through offerings of shares on Impact Exchange.
- Investors can expect to receive an economic return through dividends (and potentially capital appreciation), as well as social returns, represented by the increased social impact generated by virtue of the investment.
- Participating Social Enterprises will gain access to a source of equity capital to fund expansion at a valuation that should reflect both the economic and social/environmental values of their businesses.
- Impact Exchange will provide a platform for Social Enterprises to raise capital via bond issuance.
- Bonds may be issued by for-profit Social Enterprises, which will pay interest and principal on the bonds from the profits generated in their businesses, as well as by not-for-profit Social Enterprises with income streams that provide a source for repayment of the bonds.
- Participating Social Enterprises will access a new source of capital to fund expansion, potentially at lower cost than other financing sources.
- Investors can expect to receive an economic return – through receipt of interest and eventual return of their principal – as well as social/ environmental returns.
Impact Exchange will establish listing criteria to promote and reward the best social purpose businesses in an environment that ensures transparency and accountability for investors.
In doing so, Impact Exchange will:
- Focus on Social Enterprises doing valuable work in fields such as healthcare, education, affordable housing, clean technology, microfinance and more;
- Utilize criteria typical of a traditional exchange – e.g., corporate governance, accounting standards, operating track record, and financial performance; and
- Add requirements to limit inclusion to companies with core social or environmental missions and ensure that listed Social Enterprises do deliver a double – (financial and social) or triple – (financial, social and environmental) bottom line return.
Each listed entity will provide investors with both regulated financial reports and social/environmental reports that will be audited by third parties.
Social/environmental reports will be based on criteria accepted by the Impact Investor and Social Enterprise communities and established by Impact Exchange. All reporting will be filed according to the regulations of the issuing country as well as Singapore, where Impact Exchange is based.
Impact Exchange will offer a market data feed on Social Enterprises and players in the ecosystem to key news services, as well as to other interested parties and investors. This information will be vital to the Impact Investors, research firms, brokerage firms and others who will stimulate trading on the exchange.