Catalytic capital: Difference between revisions

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1.  ''Sustainability - loan markets - Social Loan Principles (SLP).''
''Sustainability - investment - loan markets.''


A loan that is fully consistent with all of the Social Loan Principles, including funding an eligible social project such as:
Catalytic capital means initial investment - or investor groups - that accept potentially lower risk-adjusted returns, in order to prove a concept and encourage further investment by others.


*Affordable basic infrastructure


*Access to essential services
"At its core, catalytic capital aims to unlock impact and draw in additional investment that would not otherwise be possible, resulting in the strengthening of communities and seeding and growing social innovation using multiple tools and approaches.


*Affordable housing
Its usages... have included the use of subsidies, guarantees, blended finance structures, and concessionary risk-tolerant investment.


*Employment generation
The flexibility of this capital and the differing interactions that stakeholders have with it is a key challenge in talking about catalytic capital..."


*Food security
''(Source - Big Society Capital)''
 
*Socioeconomic advancement and empowerment
 
 
2.  ''Sustainability - loan markets - Other lending and borrowing.''
 
A similar loan, not fully consistent with the Social Loan Principles.




== See also ==
== See also ==
* [[Asia Pacific Loan Market Association]]
* [[Big Society Capital]]
* [[Blended finance]]
* [[Capital]]
* [[Capital]]
* [[Concessionary]]
* [[ESG investment]]
* [[ESG investment]]
* [[Fixed income]]
* [[Green Bond Principles]]
* [[Green Bond Principles]]
* [[International Capital Market Association]]
* [[Guarantee]]
* [[Loan Market Association]]
* [[Investment]]
* [[Loan Syndications & Trading Association]]
* [[Investor]]
* [[Proof of concept]]
* [[Return]]
* [[Risk-adjusted return]]
* [[Risk tolerance]]
* [[Social Bond Principles]]
* [[Social Bond Principles]]
* [[Social impact bond]]
* [[Social impact bond]]
* [[Social inclusion bond]]
* [[Social inclusion bond]]
* [[Social investment]]
* [[Social loan]]
* [[Social loan]]
* [[Social Loan Principles]]
* [[Social Loan Principles]]
* [[Social project]]
* [[Social project]]
* [[Subsidy]]
* [[Sustainability bond]]
* [[Sustainability bond]]
* [[Sustainability Bond Guidelines]]
* [[Sustainability Bond Guidelines]]
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==External link==
==External link==
*[https://www.lma.eu.com/application/files/1816/1829/9975/Social_Loan_Principles.pdf Social Loan Principles - LMA, APLMA & LSTA]
*[https://bigsocietycapital.com/about-us/ Big Society Capital - about us]
 
[[Category:Financial_products_and_markets]]

Latest revision as of 09:43, 30 November 2023

Sustainability - investment - loan markets.

Catalytic capital means initial investment - or investor groups - that accept potentially lower risk-adjusted returns, in order to prove a concept and encourage further investment by others.


"At its core, catalytic capital aims to unlock impact and draw in additional investment that would not otherwise be possible, resulting in the strengthening of communities and seeding and growing social innovation using multiple tools and approaches.

Its usages... have included the use of subsidies, guarantees, blended finance structures, and concessionary risk-tolerant investment.

The flexibility of this capital and the differing interactions that stakeholders have with it is a key challenge in talking about catalytic capital..."

(Source - Big Society Capital)


See also


External link