Our Solution

In reply to the challenge, Chanya Impact developed a mechanism that seeks to use the multi-trillion dollar debt capital markets to enhance the credit profile of important and high priority projects, in scale, and to a level of investment grade or better, without needing to increase the debt burden of low income countries or relying on philanthropic grants.

By improving the alignment between institutional investors, impact investors and project developers through an independent debt capital markets mechanism, Chanya Impact aims to work alongside existing mechanisms to unlock the investment needed for important and high priority projects. 

Why Food Systems

Food systems account for 33% of green house gas (GHG) emissions but only receive 3% of public funding for climate change adaptation and mitigation. We believe that changing this funding paradigm can not only have a direct impact on GHG emissions, but also help support other Sustainability Development Goals in poverty reduction, biodiversity and nutrition.

What’s in the name

Chanya means “positive” in Swahili and “Light coming from the Moon” in Hindi, which goes to the heart of what we stand for as an impact financing solutions provider that has been created for the sole purpose of improving the lives of those who need it most.

Who benefits from Chanya Impacts products and services?

Chanya Impact takes a whole of systems approach to solve for some of the biggest issues in climate change financing

The Chanya Impact Mechanism

The mechanism developed by Chanya Impact uses capital markets techniques to provide two types of tradeable instruments for two target investor groups:
  • A high credit quality bond (the “A Note”), where the coupon is tied to the outcome of the impact created by the target impact project, but where the capital is protected by highly rated capital markets exposures
  • An impact bond (the “B Note”), where the proceeds raised by the bond are used to finance the target impact project, with coverage of up to 90% of the principal being protected by the highly rated capital markets exposures in the event that the project doesn’t deliver the environmental, societal and/or economic impact predicted

Unlike insurance products that reduce the money flowing to impact projects, we have created a solution where all the money invested at the impact level flows through to impact projects.

Further additionality is delivered through:
  • increased capacity to scale the coverage granted to the B Note investors, as the capacity is sourced from the multi-trillion dollar capital markets
  • expedition of investment decisions by delivering a credit profile which is more easily understandable to institutional investors
  • the ability to recycle capital into new impact projects by investors in the B Notes being able tosell the whole or any part of the B Notes regardless of whether the underlying target impact project has been completed

Contact us

Should you require further information, please use our contact form to connect with us.

Our Solutions