Singapore: IIX’s Impact Partners makes first debt-based deal in Pacific Baby

Impact Partners, a private platform of IIX (Impact Investment Exchange), made its first debt-based deal in Pacific Baby, a baby feeding products provider based in Hong Kong.

IIX disclosed on Thursday (April 20) that the debt-based investment from a group of angel investors will enable Pacific Baby to expand its business to meet consumer demand and further contribute to children’s health and the environment.

The deal size was not disclosed.

Established in 2010, Pacific Baby is a social and environmental impact driven company, producing a range of natural and recyclable baby feeding items. It aims to prevent health problems associated with petroleum-based plastic products where chemicals leach into food and cause hormonal disruptions and other diseases.

Pacific Baby said that petroleum-based plastic items comprises 90 per cent of products in the $5 billion baby feeding industry. The company’s products are currently available in 30 countries.

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On introducing the debt-linked deals on the Impact Partners platform, IIX managing director Robert Kraybill explained that lending is a great way for first-time impact investors to get involved as they have good visibility that their investment will be paid back within a relatively short timeframe.

“We are thrilled to introduce debt-linked deals on the Impact Partners platform and to have assisted Pacific Baby in its latest round of capital raising. We will be offering more lending opportunities on the Impact Partners platform in order to meet the working capital needs of the rapidly growing impact enterprises that we serve,” Kraybill said.

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Impact Partners claims to be the world’s largest private placement platform for impact investing. It is open to accredited investors from around the world. Over 30 deals have been closed on the platform so far, all of which were equity investments.

This first debt-based deal on the platform has been structured on an innovative revenue-linked returns model, offering investors an upside on their investment as the company grows, that is significantly higher than traditional debt models.

Pacific Baby founder Cameron Honarvar said, “IIX understood our needs completely, and were very helpful in finalizing our proposed structure and putting us in touch with the right kind of progressive sustainable impact investors.”

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