• The sectors where S³IDF has done projects till now
• What is the life cycle of investments/projects that S³IDF fosters?
• What is the Pre-investment stage?
• What do we mean by Implementation stage?
• When do projects enter operations?
• How does S³IDF do monitoring and evaluation of its projects?
• What is a partial guarantee?
• What do we mean by gap filling financing?
• What is bridge financing?
• What is an Enterprise Support Transaction (EST)?
• Does S³IDF charge a fee for its services?

The sectors where S³IDF has done projects till now:

1. Lighting
2. Biomass energy
3. Silk production and processing
4. Distribution of modern energy sources (“last mile” supply of LPG and electricity)
5. Information and communications technologies (ICT)
6. Water and sanitation
7. Small/micro-enterprise based infrastructure

What is the life cycle of investments/projects that S³IDF fosters?

Life cycles of different projects vary and these depend on a number of factors such as availability of an appropriate technology supplier, willingness of the financial institution to participate in the project, the terms and conditions of the project etc. Projects can enter into S³IDF’s list simply as a concept with potential of transforming into a project at a later stage. The projects under S³IDF’s list usually evolve through pre-investment stage, implementation stage and operations stage.

What is the Pre-investment stage?

Typically, when S³IDF identifies a project and starts working on the project conception and feasibility, studies the required technological inputs and approaches financial institutions for funds; the project enters pre-investment stage. But Pre-investment work starts on a project only when it satisfies the following 4 criteria: (i) The project is pro-poor; (ii) it has a concept (iii) There is a targeted community (ies); and (iv) there are possible partners. 

What do we mean by Implementation stage?

If the pre-investment work has sufficiently progressed and the project concept has been proved feasible, appropriate local partner (individuals/organizations) to operate the enterprise have been found and the requisite technology and market linkage are available. Then steps are taken to get the project into implementation. A project is termed to be in implementation if monies have been committed in any one of the following forms:
a) Technology supplier has procured material or commenced installation
b) S³IDF has deployed money in the form of direct financing, partial guarantee for a loan etc.
c) Local equity has been contributed
d) Bank has given a written commitment to sanction the loan

When do projects enter operations?

It is the post-implementation phase where financial closure is achieved, infrastructure is commissioned and is in use, and generates income. Once the project is in operations, monitoring and evaluation of the project commences, followed by lessons dissemination critical to replication by S³IDF (or others).

How does S³IDF do monitoring and evaluation of its projects?

S³IDF strongly believes that monitoring and evaluation should be a focus for all of its projects that are in operations and that any learnings from these should be applied to future such projects. For this S³IDF personnel do the monitoring periodically. Besides this, S³IDF employs independent consultants to conduct detailed evaluation. The monitoring and evaluation involves the following steps:

1. Looking at the accounts and finances of the project to ascertain profit/loss, maintenance of accounts and so on.
2. The way the enterprise is operated and labour is employed for different functions.
3. The financial institutions’ viewpoint about the projects’ running and repayment of loan.
4. Most importantly, the beneficiaries’ view point on the project and their perceived benefits from the project.

What is a partial guarantee?

A financial instrument by which S³IDF encourages a FI’s participation in a project and shares the financial risk of a project with the bank. An amount given by S³IDF is held in the bank as a term deposit. This deposit is used as a guarantee (partial) against the loan.

What do we mean by gap filling financing?

A financing role played by S³IDF in all its projects through its menu of financing (e.g. guarantees, primary debt, secondary debt, equity, equipment supplier-financing, budget intercept) that fills the required gap of finances to make the project materialize.

What is bridge financing?

Gap filling financing by S³IDF where financing from Financial Institutions and other sources such as government subsidies, entrepreneur’s margin money is not immediately available/accessible for various reasons. The financing from S³IDF is a stop gap arrangement and is withdrawn once financing from other sources becomes available for the owner/operators of a project.

What is an Enterprise Support Transaction (EST)?

A type of transaction under S³IDF’s portfolio where S³IDF provides business support, gap-filling financing for existing informal/formal enterprises having big pro-poor impacts or enterprises with a pro-poor mission.

Does S³IDF charge a fee for its services?