Convergence has awarded a scoping-stage grant under the Indo-Pacific NGO Blended Finance Accelerator to Oxfam Australia and OBOR Management, to support the design and validation of the Equi-Green Fund, a USD 20 million blended finance vehicle aimed at investing in climate-aligned, gender-inclusive small and medium-sized enterprises (SMEs) across Southeast Asia. The proposed fund seeks to mobilize catalytic and private capital to address the financing gap faced by early-stage enterprises operating in frontier and underserved markets.
Across Southeast Asia, many climate-focused SMEs face significant barriers to accessing appropriate financing, particularly at early stages of growth. These challenges are compounded in frontier markets such as Cambodia and Timor-Leste, where limited investor presence, shallow capital markets, and high perceived risk constrain the availability of equity and quasi-equity financing. Women-led enterprises are particularly affected, facing structural barriers that limit access to capital, networks, and business support services.
The Equi-Green Fund aims to address these challenges by developing a blended finance structure that deploys risk-tolerant capital into early- and growth-stage enterprises, while embedding strong gender and climate objectives. The model combines concessional and commercial capital to enable investments in higher-risk segments typically underserved by traditional investors. In parallel, a technical assistance facility will support investees through capacity building, business development, and impact measurement. The fund will target enterprises in sectors such as renewable energy, the circular economy, and climate-smart agriculture, helping to address the region’s “missing middle” financing gap by providing early-stage venture capital alongside tailored support.
Design question and learning potential from the market: How can a blended finance fund be structured to deploy risk-tolerant capital into early-stage, climate-aligned SMEs in Southeast Asia while aligning investor expectations with frontier market realities and ensuring meaningful gender and climate impact?
Oxfam’s approach leverages its extensive experience working with SMEs and local partners across the region, combined with Obor Management’s investment expertise. The model aims to bridge the gap between grant-based support and commercial investment by creating a pathway for early-stage enterprises to access capital while building a pipeline of investable opportunities. By integrating technical assistance and strong impact frameworks, the initiative seeks to improve enterprise readiness and enhance long-term sustainability.
Convergence’s support will enable Oxfam and its partners to undertake critical scoping activities, including financial and legal structuring, pipeline validation, investor engagement, and refinement of the fund’s investment strategy. These activities will help determine the feasibility of the fund, strengthen its design, and position it for future fundraising and implementation.
