EAIF 2026 Banner

__April 21-24, 2026, Nairobi, Kenya__

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Organised by the Alliance for Rural Electrification, The [ARE Energy Access Investment Forum (EAIF)](https://www.eaif.energy/) is the top annual investment event, fostering partnerships for the purpose of renewable electrification, including energy access, productive use, commercial and industrial uses of power and the green energy transition. With a track-record since 2016, ARE aims to mobilize 500 people in-person and over 1,000 people virtually for a total of more than 1,500 participants. This special EAIF edition will bring together private and public investors, industry leaders from both the energy and related sectors, utilities and government officials, for an exclusive EAIF experience. 

Convergence is a supporting partner of EAIF 2026.

ARE Energy Access Investment Forum 2026

Don’t miss the ARE Energy Access Investment Forum (EAIF) in Nairobi!

ARE Energy Access Investment Forum

gacmontrealtraining web

__Tuesday, March 31, 2026, 8:30AM - 12:00PM/mardi 31 mars 2026, 8 h 30 à 12 h 00__

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(Le français suit/French follows) 
 

Convergence, with support from [Global Affairs Canada](https://www.international.gc.ca/global-affairs-affaires-mondiales/home-accueil.aspx?lang=eng), is proud to introduce a new skill-building initiative under its [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm). Blended finance—using catalytic capital from public or philanthropic sources to attract private sector investment—is a key approach to mobilizing investment in emerging markets and developing economies (EMDEs). This initiative aims to enhance the skills of Canadian fund and asset managers in designing and structuring blended finance vehicles for EMDEs, enabling both diversification and market-adjusted risk-return, while meeting the growing demand for sustainable investments.

This session will bring together participants from the Canadian sustainable finance space, equipping them with practical, hands-on knowledge through Convergence’s proprietary training materials and real-world case study presentations from leading fund and asset managers. It will also offer insights from mainstream asset managers and impact fund managers on scoping, launching, and deploying blended finance vehicles to attract concessional and commercial investors, thereby unlocking new opportunities and expanding their reach in EMDEs.

This training will be delivered in English, but French versions of all resources will be provided.

We previously held a version of this training in Toronto on October 25, 2025. This session will cover the same material as the Fall session.

*Registration is subject to pre-approval. You will be notified of your approval status shortly after submission.*

(FRANÇAIS/FRENCH)

Convergence, avec le soutien [Affaires mondiales Canada](https://www.international.gc.ca/global-affairs-affaires-mondiales/home-accueil.aspx?lang=eng), est fière de présenter une nouvelle initiative de renforcement des compétences dans le cadre de son programme [Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM)](https://www.convergence.finance/accelerator/a4fm). Le financement mixte, qui consiste à utiliser des capitaux catalytiques provenant de sources publiques ou philanthropiques pour attirer les investissements du secteur privé, est une approche clé pour mobiliser les investissements dans les marchés émergents et les économies en développement (EMDEs). Cette initiative vise à améliorer les compétences des gestionnaires de fonds et d'actifs canadiens dans la conception et la structuration de véhicules de financement mixte pour les EMDEs, permettant à la fois la diversification et un rapport risque-rendement ajusté au marché, tout en répondant à la demande croissante d'investissements durables.

Cette session réunira des participants issus du secteur canadien de la finance durable et leur permettra d'acquérir des connaissances pratiques grâce au matériel de formation exclusif de Convergence et à des présentations d'études de cas réels par des gestionnaires de fonds et d'actifs de premier plan. Elle offrira également des informations provenant de gestionnaires d'actifs traditionnels et de gestionnaires de fonds d'impact sur la définition, le lancement et le déploiement de véhicules de financement mixte afin d'attirer des investisseurs concessionnels et commerciaux, ouvrant ainsi de nouvelles opportunités et élargissant leur portée dans les EMDEs.

Cette formation sera offerte en anglais, mais des versions françaises de toutes les ressources seront fournies.

Nous avons déjà organisé une version de cette formation à Toronto le 25 octobre 2025. Cette session couvrira les mêmes thèmes que la session d'automne.

*L'inscription est soumise à une pré-approbation. Vous serez informé de l'état de votre demande peu après l'avoir soumise.*

Blended Finance Training for Canadian Fund and Asset Managers (Montréal)

Join us for a training on blended finance for Canadian Fund and Asset Managers in Montréal.

Blended Finance Training for Canadian Fund & Asset Managers

Inside the Deal: MicroBuild Fund

__Tuesday, March 24, 2026, 9:00AM-10:00AM ET__

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Explore the inner workings of real blended finance transactions through Convergence's "Inside the Deal" webinar series. Each quarter, we delve into a successful deal, inviting the deal sponsor and key stakeholders to share candid insights on structuring these intricate transactions.

Our upcoming webinar will spotlight the MicroBuild Fund which is the first housing-focused microfinance investment vehicle dedicated to helping low-income families. The fund lends to microfinance institutions, which in turn provide small loans to families to build safe, decent and durable homes as their finances allow.

During this one-hour session, Habitat for Humanity will take us through the fund’s design, structuring process, and fundraising journey. We will also engage in in-depth discussions with key stakeholders to explore practical insights and lessons learned along the way. The webinar will conclude with an interactive Q&A for all participants.

*This webinar is open to Convergence members only.*

 Inside the Deal: MicroBuild Fund

Join Convergence for our next "Inside the Deal" webinar, which will spotlight the MicroBuild Fund which is the first housing-focused microfinance investment vehicle dedicated to helping low-income families.

FoE summit

__March 24-25, 2026, Amsterdam, Netherlands__

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This high-level event unites a global mix of top project developers, financial institutions, investors, service providers, and asset owners to tackle the critical strategic challenges and opportunities related to accelerating the renewable energy transition in emerging markets.

This edition’s theme — “Navigating change in the energy transition” — highlights the need to adapt to evolving global dynamics, shifting policies, and emerging technologies that redefine how renewable energy projects are financed and developed worldwide.

Convergence will be attending and participating in the Summit.

Future of Energy Summit 2026

Don’t miss the Future of Energy Summit in Amsterdam!

Future of Energy Summit

__Monday, March 23, 2026, 6:00PM – 8:00PM CET__

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Convergence and Climate Fund Managers invite you to a networking reception on the sidelines of the Future of Energy Conference in Amsterdam, Netherlands.

Join us to mingle with other impact investors, institutional investors, donors, development banks, and sponsors of blended finance deals. Climate Fund Managers and Convergence will present the latest trends and developments in the blended finance market, and attendees will have ample time to exchange ideas and discuss blended finance initiatives.

*You do not need to be registered for the Future of Energy Conference to attend our reception. Snacks and drinks will be served.*

*This event is at full capacity. If you'd like to join the waitlist, please contact your relationship manager.*

Blended Finance Networking Reception in Amsterdam

Join Convergence and Climate Fund Managers for a networking reception on the sidelines of the Future of Energy Conference in Amsterdam, Netherlands.

Convergence Blended Finance Training for Members in Asia

__March 17-18, 2026 in Singapore__

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Convergence, along with WWF, is hosting a blended finance training for members in Asia, a two-day, in-person convening from March 17-18 in Singapore, designed to advance blended finance collaboration and market-building across Asia and the broader Asia-Pacific region.

The Asia-Pacific faces significant financing gaps across climate mitigation, adaptation, resilience, and nature-positive development. Blended finance has a critical role to play in mobilizing private capital at scale, strengthening market capacity, and enabling innovative investment structures tailored to regional needs.

This regional member event will bring together Convergence members, investors, development finance institutions, philanthropies, insurers, corporates, and ecosystem partners to:
- Share data-driven insights on regional blended finance trends and capital flows
- Deepen understanding of sector-specific opportunities and barriers
- Foster peer learning and capacity building
- Identify collaboration opportunities among members and partners in Asia

Convergence is pleased to invite expressions of interest from members and strategic partners to participate in the Convergence Asia Regional Member Event, a two-day, in-person convening designed to advance blended finance collaboration and market-building across Asia and the broader Asia-Pacific region.

nairobi inperson training mar26 web v2

__Thursday, March 5, 2026, 9:00AM - 4:00PM EAT, Nairobi, Kenya__

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Convergence is organizing an in-person blended finance training in Nairobi for public, private, and philanthropic actors. This interactive, practice-driven training on blended finance is designed for intermediate-level staff and will combine insights from Convergence experts and blended finance practitioners in the field. The training will offer Convergence members and partners the opportunity to gather, share insights and experiences, and tackle difficult questions around innovative approaches to mobilize private capital for the Sustainable Development Goals.

The agenda will include:
- Blended finance market trends
- A deep dive into an innovative blended transaction
- Practitioner-led peer exchange discussions 
- An interactive group discussion based on a simulated case study

 
This training is complimentary for members (one seat for Standard Membership, two seats for Market Builder Membership), USD 150 for additional member seats, and USD 250 for non-members. Please contact your relationship manager for more details or questions about your membership type.
 

*Registration is on a first-come, first-served basis, and capacity is limited. We encourage registering early to reserve your seat.*

In-Person Convergence Blended Finance Training in Nairobi - March 2026

Join us in Nairobi, Kenya for a full-day training combining insights from Convergence experts and blended finance practitioners in the field.

Blended Finance Training in Nairobi, Kenya

Transformative capital: The role of blended finance in shaping the trajectories of gender- and climate focused impact funds in Sub-Saharan Africa

__March 3, 2026, 8:00AM-9:00AM EST__

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Join the Catalytic Climate Finance (CC Facility) Facility for a virtual webinar on March 3rd, 2026 from 8:00AM-9:00AM EST.

This 1-hour virtual session will review key findings from the CC Facility  Learning Hub's latest "[Transformative capital: The role of blended finance in shaping the trajectories of gender- and climate focused impact funds in Sub-Saharan Africa" report](https://www.convergence.finance/resource/transformative-capital-the-role-of-blended-finance-in-shaping-the/view) written by I&P Ecosystems. The session will also include a panel discussion with African-led fund managers and investors sharing their experiences using blended finance at the gender-climate nexus.

Webinar: Transformative capital Report 

nairobinetworking feb26 web

__Thursday, February 26th, 6:00pm – 8:00pm EAT__

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Convergence and CrossBoundary invite you to a networking reception on the sidelines of Sankalp Africa Summit in Nairobi. Attendees will have the opportunity to connect with other Convergence members, including impact investors, institutional investors, donors, development banks, sponsors of blended finance deals, and other ecosystem actors. Join us to exchange ideas and discuss blended finance initiatives.

Snacks and drinks will be served.

*Registration is on a first-come, first-served basis, with a maximum of 2 people per organization. To register please log in to your Convergence account.*

Member Networking Reception in Nairobi - February 2026

Join us for a member networking reception in Nairobi, Kenya

Member Networking Reception in Nairobi

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__February 24-27, 2026, Cape Town, South Africa__

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Don’t miss [Africa's Green Economy Summit](https://wearevuka.com/green-economy/ages/) in Cape Town from February 24-27, 2025. The Summit will bring together the global investor community, project owners and business executives focused on green transport, renewable energy and clean technologies, African governments, cities, and policy makers to pave the way for an inclusive green economy and a sustainable future.

Convergence is a supporting partner of the Summit.

Africa's Green Economy Summit 2026

Don’t miss Africa's Green Economy Summit in Cape Town!

Africa's Green Economy Summit

Rethinking urban adaptation and mobilizing finance at scale for resilient cities in India

__Tuesday, February 17, 2026, 2:00PM - 3:30PM IST in Mumbai, India__

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Convergence, along with the Indian Council for Research on International Economic Relations (ICRIER), WRI India, is hosting a session on rethinking urban adaptation and mobilizing finance at scale for resilient cities in India, on the sidelines of Mumbai Climate Week.

The session brings together perspectives from public finance, urban governance, blended finance and climate-finance innovation with a particular focus on how concessional capital, risk-sharing instruments, and public balance sheets can be used to mobilise private investment. Additionally, the session positions blended finance not as a standalone solution, but as an instrument that must be anchored within stronger municipal and state public finance systems. It speaks directly to the actors who ultimately determine scale and sustainability, such as finance departments, finance commissions, and state governments, while remaining grounded in the lived fiscal constraints of Indian cities.
 

*Due to limited capacity, this is an invite-only event. For further information, please reach out to asia@convergence.finance*

Rethinking Urban Adaptation and Mobilizing Finance at Scale for Resilient Cities in India

Convergence, along with the Indian Council for Research on International Economic Relations (ICRIER), WRI India, is hosting a session on rethinking urban adaptation and mobilizing finance at scale for resilient cities in India, on the sidelines of Mumbai Climate Week.

Urban Adaptation and Finance for Resilient Cities in India

Member Training: Beyond International Capital - The Role of Domestic Investors in Blended Finance

__Wednesday, February 11, 2026 at 9:00AM - 10:00AM ET__

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Local capital is essential to the long-term scale, resilience, and sustainability of blended finance. Mobilizing domestic investors helps anchor investments in local markets, reduce reliance on foreign capital, and mitigate risks such as currency mismatch and capital flight. Yet, despite holding substantial pools of capital, domestic investors, including banks, institutional investors, and public financial institutions, remain underrepresented in blended finance across regions and sectors. Their participation is constrained by barriers including credit risk, currency risk, and limited track records of investable projects.

The session will open with key insights, data, and trends on local capital mobilization, drawing on Convergence’s latest analysis of blended finance transactions from 2022–2024. This opening segment will clarify how local investors are defined, where domestic capital is currently participating by region and sector, and the terms (commercial or concessional) on which local investors most commonly engage.

This will be followed by two 20-minute case study presentations, each demonstrating a distinct approach to mobilizing local capital in blended finance:

- __Dhamana Guarantee Company__: A regional credit enhancement platform launched in 2024 to provide local-currency guarantees for infrastructure and real sector projects across Kenya, Uganda, Tanzania, and Rwanda. This case will explore a solution designed to unlock domestic institutional capital and strengthen local capital markets.

- __Peru Blue Bond – Water.org__: A pioneering local-currency blue bond launched in Peru to mobilize domestic institutional investors and expand financing for inclusive water and sanitation services through the country’s municipal savings and credit banks. This case will explore a capital markets solution designed to scale sustainable infrastructure lending and strengthen local financial systems.

Join us for a member training exploring the role of domestic investors in blended finance.

The Role of Domestic Investors in Blended Finance

Rabobank is a large Dutch bank with a presence in 35+ countries, including 25+ emerging countries via Rabo Partnerships and Rabobank Foundation. In the Netherlands, Rabobank serves both retail and corporate clients, while globally they focus on the food and agricultural sector.

Within Rabobank, Rabo Partnerships is a dedicated entity that partners with financial institutions around the world to drive impact in food and financial systems, especially in emerging markets. In this way, it aims to strengthen these institutions’ ability to serve smallholder farmers and agricultural small- and medium-sized enterprises (agri‑SMEs).

We spoke to Pieter Bos, Sr. Advisor Blended Finance at Rabo Partnerships about how they engage in blended finance, their AGRI3 Fund, their focus areas, and more.

__Tell us about how you engage with partners to develop scalable food and agriculture finance solutions in emerging markets.__

We do this in a couple of ways. One is by taking minority equity stakes in these financial institutions and another is by delivering technical assistance. For example, part of this work involves setting up digital solutions, like developing digital credit‑scoring tools, using sensor and satellite data for farm and climate risk mapping, and embedding data‑driven approaches into the bank’s operations. The goal is really to help scale sustainable finance, reduce risk, and increase access to financial services where they are needed most.

We also have a dedicated blended finance team within Rabo Partnerships that focuses on bringing together public and private funding to mobilize capital into emerging markets. Rather than focusing on fund management, the team concentrates on origination and structuring: translating sustainability and transition challenges into concrete lending propositions that work for farmers, clients, and commercial banks alike. 

The blended finance team structures loans for Rabobank’s large base of corporate and rural clients in emerging markets, both on an individual basis and through portfolio lending. In addition, the team supports local financial institutions in engaging with impact capital providers including impact funds and development banks, and developing lending propositions that expand access to finance for the agricultural sector.

__Rabobank co-created the AGRI3 Fund, one of the most recognized blended finance vehicles. What motivated the bank to help launch this fund, and how has it evolved to meet market needs?__

AGRI3 was launched in 2020 by Rabobank and United Nations Environment Programme (UNEP), together with IDH and with support from FMO - Entrepreneurial Development Bank, and the Dutch government. It was created in response to the urgent need to support the transition to sustainable agricultural practices and to combat deforestation. Many farmers and agribusinesses are willing to invest in sustainable land use, but the financial system is often unable to support the associated risks and longer timelines.

Transitioning to deforestation-free and climate-resilient production typically requires longer loan tenors, grace periods and financing for activities that might not generate immediate cash flows. These features sit uncomfortably within traditional bank risk frameworks.

AGRI3 was designed as a guarantee-based blended finance fund. By providing partial credit guarantees and technical assistance, the fund enables commercial banks to -amongst others - extend loan tenors, increase ticket sizes and support transition investments that would otherwise remain unfunded.

A strong example of a loan proposition built with Agri3 Fund is [Renova Pasto](https://www.rabobank.com/about-us/rabo-partnerships/news/011331477/renova-pasto) in Brazil: a standardized loan product that combines long term financing, partial guarantees and technical assistance to support cattle farmers restore degraded pastureland and accelerate their compliance with the Brazilian Forest Code. Embedding this structure into regular credit processes has significantly improved efficiency and replicability.

Since its launch, AGRI3 has evolved from supporting individual transactions to more scalable, standardized approaches, including partnerships with other financial institutions.

__Many of Rabo Partnerships’ blended finance transactions make use of guarantees. Could you explain how guarantees help unlock private capital, and why Rabo Partnerships has chosen to prioritize this instrument over other blended finance tools?__

In sustainable agriculture and land-use transitions, risk is often structural rather than cyclical. Farmers face climate risks, transition risks and temporary income dips as they adopt new practices. At the same time, lenders face uncertainty around unfamiliar business models and the longer investment horizons these transitions require.

Guarantees directly address these challenges by absorbing part of the downside risk. For banks, that means they can lend with longer tenors, to clients, activities and/or assets that normally fall outside the standard risk appetite, while maintaining commercial pricing and credit discipline.

Rabobank sees clear value in these guarantees because they fit naturally into bank lending frameworks. They can be deployed efficiently, without requiring lenders to fundamentally change how they operate.

At the same time, guarantees remain scarce relative to demand. Expanding their availability for globally active lenders like Rabobank is, in our opinion, one of the most impactful roles development financial institutions (DFIs) and development banks could play in unlocking private capital for sustainable agriculture.

__What are the key impact areas Rabobank has focused on through its blended finance initiatives?__

Our blended finance team’s initial efforts have been mainly focused on deploying the AGRI3 Fund alongside Rabobank’s own balance sheet, which resulted in a sizeable and growing portfolio. 

At the same time, when it comes to working with local financial institutions and our “partner banks”, we are still at an earlier stage, but we see a clear opportunity to scale. Local banks and non-bank financial institutions are essential for farmer finance. They are close to farmers and understand local realities, but many remain cautious about financing food and agriculture businesses because of perceived risks.

Moving the needle requires stronger collaboration with value‑chain players to improve risk profiles, combined with blended finance tools that allow banks to reach underserved segments more confidently.

Overall, Rabo Partnerships’ blended finance work aligns with three closely connected Rabobank impact priorities:
- Nature: forest protection, land restoration, and deforestation-free supply chains
- Climate: mitigation and adaptation through more resilient farming systems
- People: improved rural livelihoods, equality, income stability, and access to financial services for rural communities.
 
Food security is also becoming an increasingly important focus; our work supports initiatives that stabilize and grow sustainable food production at scale. This includes solutions that help farmers access modern equipment and high‑quality inputs essential for productivity and climate resilience. Blended finance solutions play a critical role by sharing transition risks and supporting the evolution of our credit and risk‑assessment frameworks. This allows commercial capital to finance investments that would otherwise fall outside standard risk appetite. Experience shows that these objectives cannot be addressed in isolation. For instance, even environmental initiatives only scale when they are economically viable for farmers. 
 

__As a commercial bank, what have been the key challenges and opportunities you’ve experienced when working with DFIs or other public sector stakeholders to structure blended finance transactions?__

One recurring challenge we face is bringing together two quite different mindsets – those of commercial bankers and impact capital providers. It can take time to find the right partner with the appropriate de-risking tools, aligned impact ambitions, and the ability to engage at the right moment. This is partly because impact capital is fragmented. 

At the same time, there is a strong opportunity to combine complementary strengths. Rabo Partnerships brings origination capacity, sector expertise, and execution capability, while catalytic capital providers bring risk-bearing, possibly concessional capital and environmental, social, and governance (ESG) expertise. When these strengths come together effectively, we can co-develop new lending propositions that work for large corporates and value chain players, while ensuring they are scalable and replicable beyond individual transactions. 

__Drawing on your experience as a commercial lender and globally active food and agriculture bank, where do you see the greatest opportunities for blended finance to help unlock more bankable transactions in the sustainable agriculture sector?__

The biggest opportunity lies in moving beyond pilots and ensuring capital reaches farmers at scale.

Some of the most promising areas include portfolio-level guarantees for partner banks serving smallholders, value chain finance linked to corporates, like input providers, sustainable equipment manufacturers and off takers, and local currency risk-sharing structures. We also see strong potential in embedding climate and nature transition products directly into core bank offerings, such as with the Renova Pasto model, rather than treating it as a stand-alone initiative.

Rabo Partnerships can originate strong, real economy pipelines across regions and commodities. What is often missing is sufficient catalytic capital to share transition risks and enable these solutions to scale. This creates a clear opportunity for development banks, DFIs, and impact funds to partner with Rabobank, Rabo Partnerships, and our partner banks in building the next generation of sustainable agriculture finance.

Read our Member Spotlight with Rabobank to learn about how they engage in blended finance, their AGRI3 Fund, their focus areas, and more.

Rabobank Member Spotlight with Pieter Bos

The Financiera de Desarrollo Nacional (FDN) is Colombia’s infrastructure development bank, offering innovative products and services to attract resources that facilitate the private sector’s participation in development projects in Colombia. They engage in the pre-investment phase to ensure a better investment climate and a quality pipeline of projects that are fiscally and financially viable, and provide funding for projects in the infrastructure sectors.

We spoke with Enrique Cadena, Vice President of Structured Finance at FDN about their priorities, the effects of diminishing foreign aid budgets, how they engage in blended finance, the opportunities they see for blended finance in Latin America, and more.

__Tell us about FDN. What are key priorities for the organization and what are you focusing on right now?__

FDN is a mixed-capital institution, majority-owned by the government. We combine public purpose with private sector discipline, operating with technical independence, strong governance, and a long-term development vision. Our mission is to close financing gaps, structure strategic projects, and mobilize capital to build a more sustainable and inclusive country.

We work across two complementary fronts. First, through project structuring, we turn complex ideas into bankable projects by designing robust technical, legal, and financial frameworks that unlock investment. And second, through project financing, we provide tailored solutions that respond to each project’s unique risks and development impact, ensuring viability and scale.

Over the past decade, FDN has played a catalytic role in some of Colombia’s most transformative infrastructure initiatives. From supporting the landmark 4G highway program—Latin America’s largest road infrastructure effort—to leading the structuring and co-financing of Bogotá Metro Line 1, we have helped reshape how infrastructure is planned, financed, and delivered in the country.

In recent years, based on our experience in project finance and project structuring, we are trying to replicate this experience in sustainability projects, especially in small and utility scale renewable energy, water, and telecommunications. Today, our key priorities include mobilizing concessional capital from public and philanthropic partners, alongside FDN’s own resources to unlock investment in emerging sectors, particularly renewable energy and the energy transition (small and utility scale), while also crowding in private and institutional investors to scale sustainable infrastructure.

With deep technical expertise and market credibility, FDN has become a regional reference in sustainable infrastructure finance. We see blended finance not just as a tool, but as a catalyst that allows us to combine public purpose, private capital, and concessional resources to turn complex challenges into opportunities for development.

__How do you engage in blended finance? Can you describe one or two blended finance transactions that FDN has been involved in?__

FDN is committed to advancing innovative financial structures that optimize financing schemes and catalyze private capital mobilization. A recent flagship initiative is the structuring and financing of an innovative project to deploy individual solar photovoltaic systems for vulnerable households in La Guajira—one of the regions with the highest levels of social inequality in the country. The project provides reliable electricity access to communities historically excluded from basic energy services, contributing to the long-term transformation of one of Colombia’s most underserved territories.

This transaction was [executed](https://www.financecolombia.com/aes-colombia-soluna-and-fdn-finance-solar-energy-project-for-la-alta-guajira-communities/) through a blended finance structure that combined concessional funding from the Climate Investment Funds (CIF), channelled through the Inter-American Development Bank (IDB), with a risk-mitigation instrument provided by FDN. This approach unlocked private investment and established a scalable, replicable framework for financing projects with meaningful social and environmental impact.

Another illustrative example is a solar initiative developed in partnership with the Tayrona Indigenous community. A defining element of this project is the active participation of the community not only in its development but also as equity investors in the solar park,demonstrating a model of inclusive ownership and co-creation that strengthens social license and long-term sustainability.

Both transactions used  blended finance structures combining concessional CIF resources, channeled through the IDB, with FDN’s risk-mitigation instruments. These structures successfully mobilized private capital and reinforced the viability of deploying similar models across high-impact, community-centered infrastructure projects.

__How do you measure the impact of blended finance transactions?__

FDN measures the impact of blended finance transactions through multiple lenses, aligned both with our institutional strategic objectives and the requirements  of concessional resource providers. Our impact assessment framework typically incorporates financial, environmental, and social dimensions.

From a __financial and risk__ perspective, we evaluate the level of private capital mobilized, the replicability of the structure across other projects or sectors, improvements in the project’s credit quality, and enhancements in financing conditions that  help make projects bankable.
From an __environmental__ perspective, we assess indicators such as avoided CO₂ emissions, new installed renewable energy capacity (MW), and the deployment of low-carbon technologies—for instance, the number of electric buses incorporated into fleets.

From a __social__ perspective, we measure the number of beneficiaries reached, jobs generated, and the extent to which vulnerable or underserved populations benefit , among other relevant indicators.

__What role do you see blended finance playing in financing infrastructure projects in LAC?__

Latin America and the Caribbean (LAC) is among the regions with the greatest need for sustainable infrastructure investment to enhance social well-being and support long-term economic growth. While the region has demonstrated strong capacity to generate well-structured, high-impact, and financially attractive projects in recent years, it continues to capture a relatively small share of global blended finance flows despite these favourable conditions.

In this context, blended finance has a critical role to play in helping the region unlock greater private sector participation in strategic sectors such as energy, mobility, education, and health. By addressing key barriers—including perceived risk, limited track record in emerging sectors, and affordability challenges—blended finance can help close financing gaps and enable more transactions to reach financial close.

Looking ahead, LAC has the potential to assume a stronger leadership role, not only by developing a robust pipeline of sustainable infrastructure projects but also by designing and executing blended finance structures that mobilize private capital at scale. This will ultimately allow the region to accelerate investment, expand access to essential services, and deliver broader social and environmental impact.

__As a development bank, has the trend of countries diminishing their foreign aid budgets affected FDN’s operations?__

Yes, reduced foreign aid envelopes have had a tangible effect. Concessional and grant-based resources remain essential for infrastructure development in Colombia, especially for upstream work such as project preparation, capacity building, and structuring support that makes projects bankable. One concrete example was the closure of USAID resources that had already been planned for certain topics and projects, aimed at leveraging and mobilizing public and private finance to support Colombia’s climate adaptation and mitigation targets. This created an immediate gap that required operational reprioritization and rapid mobilization.

However, we also viewed the shift as a strategic opportunity. It accelerated our efforts to diversify funding sources and deepen relationships beyond traditional donors. We moved quickly to engage alternative partners , like the Climate Investment Funds, the Green Climate Fund, as well as other multilateral and bilateral agencies, and explore complementary instruments, reducing reliance on any single channel. In short, while the international aid environment is clearly changing, we are adapting proactively—using this moment to broaden our coalition of allies and to build new bridges with a wider ecosystem of public, philanthropic, and private actors.

__What are some opportunities you see for blended finance in Latin America? What are some challenges?__

Latin America presents significant opportunities for blended finance because the region combines large infrastructure and climate investment needs with limited fiscal space. The strongest near-term opportunities are in sectors with clear development outcomes and scalable cash flows—such as renewable energy and grid upgrades, resilient transport, water and sanitation, nature-based solutions, and social infrastructure—where catalytic funding can de-risk projects and crowd in private capital.

At the same time, the market context is shifting quickly. As some traditional aid budgets tighten, the region is seeing “newcomers” in blended finance and development support. Gulf countries are increasingly visible in these schemes, and China has strengthened its presence in recent years. While some funding sources may be declining, others are emerging, creating a real opportunity to diversify financing sources and instruments, both concessional and non-concessional.

The key challenge is execution. This includes understanding evolving investor requirements, aligning incentives across partners, and ensuring that projects are truly bankable. In many cases, the decisive bottleneck is upstream—insufficient pre-investment preparation, weak risk allocation, limited data, and inconsistent impact frameworks. The priority is to build high quality, high impact pipelines from the earliest stages so projects become attractive, investable opportunities for a broader  range of financiers.

__How do you see FDN’s blended finance activities evolving in the future?__

FDN’s solid track record in resource mobilization, project structuring, and execution, positions the institution as a strategic partner for the designing blended finance solutions that enable high impact infrastructure projects. Recently, in a single year, FDN deployed concessional resources originally planned for disbursement over a five-year horizon—demonstrating the institution’s operational agility, execution capacity, and robust pipeline of viable projects.

Looking ahead, FDN aims to deepen and expand its role in the blended finance ecosystem, strengthening its leadership in Colombia while positioning itself as a regional benchmark for innovative, scalable, and high-impact blended finance transactions.

Our corporate strategy explicitly recognizes blended finance as a core pillar for achieving our development mandate. FDN will continue strengthening its capacity to design catalytic financial instruments, collaborate with concessional resource providers, and mobilize private capital toward sectors with high economic, social, and environmental impact. Through this approach, we expect to scale up blended finance operations, replicate successful structures across multiple sectors, and contribute to bridging the region’s infrastructure and climate investment gaps.


Read our member spotlight featuring FDN to learn about their priorities, the effects of diminishing foreign aid budgets, how they engage in blended finance, the opportunities they see for blended finance in Latin America, and more.

Financiera de Desarrollo Nacional (FDN) Member Spotlight

Financiera de Desarrollo Nacional (FDN) Member Spotlight with Enrique Cadena

Finance in Motion is a global impact asset manager that aims to deliver diversified, risk-mitigated returns with impact. Their financing solutions address climate change, biodiversity loss, and social inequality. Over 20 years they have invested across 44 high-growth economies and have local expertise from Latin America to Eastern Europe. 

We spoke with Sylvia Wisniwski, CEO at Finance in Motion, about how they engage in blended finance, their geographic and sectoral foci, impact measurement, how they apply a gender lens in their work, and more.

__How do you engage in blended finance?__

Blended finance is a core pillar of our approach. We manage and advise tiered alternative investment fund structures where catalytic funding from public or multilateral development bank/development finance institution investors helps de-risk commercial investments, providing an attractive risk-return to institutional investors. This allows us to mobilize significant private capital into emerging markets where financing gaps are largest.

__Do you have a specific geographic or sectoral focus when it comes to blended finance?__

Our blended finance activities focus solely on emerging markets in Latin America, Africa, Eastern Europe, and the Middle East. From a thematic point of view, we focus on green and social funds. Our green funds invest in climate mitigation and adaptation, biodiversity, sustainable agriculture, and circular economy. Our social funds focus on financial inclusion, supporting micro, small, and medium enterprises (MSMEs) and underserved groups. These are high-impact areas where blended finance can make a measurable difference alongside generating adequate risk-return for investors.

__Can you tell us about a specific blended finance deal Finance in Motion was involved in? What were the conditions and were certain instruments used and why?__

We manage or advise five private debt funds that are all blended finance vehicles with a total of more than EUR 4 billion in catalytic and private capital. These blended finance funds are evergreen. They are under constant fundraising — and have been very successful in raising private capital. 

Instead of de-risking single investments, we use credit enhancement instruments at the portfolio level. Through this approach, we use catalytic funding on a rolling basis as portfolio composition changes over time, maximizing the impact of the first- and second-loss capital. This enables the creation of flagship funds like the [European Fund for South-East Europe](https://efse.lu/) and the [Green for Growth Fund (GGF)](https://www.ggf.lu/) which both at present have over EUR 1 billion in assets under management. Around EUR 8 billion has been invested via these two funds alone over the past 15 years. 

Let us take a closer look at the GGF. It was initiated by KfW Development Bank and European Investment Bank (EIB) in 2009 with first-loss funding from the European Commission and the German government. International finance institutions like EIB, KfW, European Bank for Reconstruction and Development, Dutch Entrepreneurial Development Bank, and Development Bank of Austria invested senior share capital making it a true “Team Europe” initiative. The International Finance Corporation invested as well. The share capital enabled investments from institutional investors into the fund due to its de-risking effect. With this capital base, GGF creates impact in 19 countries spanning the Western Balkans to the Middle East. GGF offers renewable energy, energy efficiency, and energy security investment opportunities through indirect financing (loans via local partner banks) and direct corporate and project finance. 

In addition to the catalytic effects in the capital structure, we have also engaged recently in a guarantee arrangement benefiting the asset side of our funds. We signed an unfunded guarantee with the Swedish International Development Cooperation Agency for the GGF amounting to EUR 60 million to increase the rate of green lending in selected countries of the Western Balkans and the EU Eastern Neighborhood beyond what we could do with first-loss capital. The interesting piece is that we kept the guarantee component outside of the capital stack or fund structure, making operations much simpler and straightforward.

__How do you measure the impact and evaluate the success of blended finance transactions?__

All our investments must pass through the three lenses of impact, risk, and return. Each fund is guided by an impact framework aligned with global standards like the Operating Principles for Impact Management, the Sustainable Development Goals, International Capital Market Association Green Bond Principles as well as relevant regulations like Sustainable Finance Disclosure Regulation and the EU Taxonomy.  

We track metrics aligned to the respective impact objectives pursued per fund, including greenhouse gas emissions avoided, hectares of land under sustainable management, jobs supported, or SMEs financed. Success, of course, is measured not only by direct outcomes but also by systemic change. For example, whether new green market standards are adopted by our investees, or whether investees continue to issue green products beyond our support.

__Do you apply a gender lens in your blended finance work?__

Gender considerations are mainstreamed across our investment process, particularly for our social funds. For example, the [SANAD Fund for MSME](https://sanad.lu/) actively supports women entrepreneurs through financing and capacity building programs. To inform these investments, we assess gender impact during the due diligence process. We also track gender data, encourage financial institutions to expand services for female clients, and increasingly align our work with the [2X Challenge](https://www.2xchallenge.org/) criteria to ensure women benefit as business owners.

__What are some interesting or unexpected challenges or learnings that you’ve had in the blended finance space thus far?__

One key learning is that blended finance requires alignment between the expectations of different stakeholders, from catalytic investors focused on impact, additionality, and leverage, to institutional investors seeking risk-adjusted returns. This requires careful structuring of blended finance vehicles and transparent communication.

At the same time, the complexity of many blended finance structures may weigh heavily on operating costs. In view of current fee compression in the asset management industry globally, many blended finance structures can only be financially sustainable if they operate at large scale.

Another challenge is timing. While structuring blended finance instruments and mobilizing catalytic capital needs time, investor needs and capital markets may change quickly. To make both come together at an agreed point in time is an art!

__What advice would you give to other organizations looking to enter or scale their efforts in blended finance?__

There is a tremendous wealth of literature about different blended finance models. Don't start from scratch, but do proper market intelligence and study the lessons learned from different blended finance models. Recently, Convergence has conducted helpful research in this context through its Scale Private Investment Mobilization Project, listing [blended finance models with different purposes](https://www.convergence.finance/standardization).

At the same time, blended finance has substantially changed over the past years. Today, blended finance structures must crowd in private capital at scale right from the start. It is also expected that there is as little blending as possible, while generating much larger leverage compared to old blended finance models. We also observe increasingly a combination of different types of blending instruments, funded first-loss capital combined with unfunded guarantees or several layers of guarantees. Furthermore, there must be proof of additionality and of the “paradigm shift” that catalytic capital enables. This requires sound impact measurement and management systems.

__How do you see Finance in Motion’s blended finance activities evolving in the future?__

As we wrap up 2025, looking ahead, we expect to deepen our focus on climate and nature finance.  Given our geographic focus on emerging markets, catalytic capital will continue to play an important role. Our goal is to mobilize even larger pools of institutional capital by offering products that combine measurable impact with robust risk-return profiles. In short, we see blended finance evolving from niche innovation to mainstream practice and [Finance in Motion](https://www.finance-in-motion.com/) intends to remain at the forefront of that shift.

Finance in Motion Member Spotlight with Sylvia Wisniwski

RDF Ghana promotes access to finance for Micro, Small and Medium Sized Enterprises (MSMEs) engaged in the business of agriculture and/or renewable energy, especially women-owned businesses.

We spoke to Yaw Oppong, CEO at RDF Ghana about their origins, impact, gaps and opportunities they see in the field, how they see their activities evolving in the future, and much more.

__Please tell us about the origins of RDF Ghana and what market failures you were set up to solve.__

RDF Ghana is an impact-driven institution, founded in 2016 by the Government of Ghana and Impact Fund Denmark. The creation of RDF Ghana was driven by the need to address the limited access to affordable credit for MSMEs in the agriculture and renewable energy sectors. RDF Ghana was also established to strengthen the capacity of Partner Financial Institutions (PFIs) and value chain actors, addressing constraints that have limited effective credit utilization. With seed funding from the Danish Government, we began as a wholesale fund channeling capital through PFIs, particularly rural banks, to underserved markets. We have since evolved into a dynamic institution also providing direct financing and capacity-building to smallholder farmers organized as outgrower businesses and Village Savings and Loans Associations (VSLAs). Our work systematically de-risks investments, builds climate resilience, and enhances the economic empowerment of women and youth.

__Describe your guarantee, line of credit, and technical assistance business. How do these offerings work together? What kinds of businesses / financial institutions do you typically partner with, and how does this help unlock additional private capital?__

__Credit Delivery - Direct and Indirect Financing__
RDF Ghana ensures capital reaches smallholder farmers through direct and indirect channels. We provide wholesale lines of credit to PFIs, mainly rural banks. We also offer direct input financing, which targets smallholder farmers organized into Outgrower Schemes and VSLAs, ensuring timely access to inputs and market linkages.

__De-risking With Credit Guarantees__
Our guarantee facility uses a 50% risk-sharing model (portfolio guarantee) to incentivize PFIs to increase lending to agriculture. This approach effectively unlocks capital for underserved borrowers by mitigating agricultural lending risks.

__Capacity-Building Through Technical Assistance__
Our Technical Assistance (TA) programs are designed to empower women and youth, strengthen the capacities of both farmers and financial institutions, and enhance environmental sustainability. Our flagship programs include:
- RDF Executive Management Essentials for RCBs (REMERB): Delivered with the National Banking College, this program closes critical knowledge gaps in corporate governance, Environmental, Social, and Governance (ESG) standards, risk management, and capital management, solely for rural banks.
- Agro Woman 360 (AW360): Holistically empowers rural women smallholder farmers through financial literacy, alternative livelihoods, and climate resilience training.
- Integrated Soil Fertility Management (ISFM): Promotes climate-smart agriculture by training farmers in input-use efficiency and sustainable soil health practices. 
 

__What would you say has been the impact of your work within the Ghanaian financial ecosystem? Feel free to share relevant examples that demonstrate the catalytic impact of our work.__

Our commitment to serving smallholder farmers has played a transformative role in strengthening rural finance and deepening Ghana’s financial ecosystem. Leveraging partnerships with PFIs and agricultural facilitators, we have deployed approximately $11 million in loans and technical assistance. These reached 30,000+ beneficiaries, including 60% women and 79% smallholder farmers. Our intervention has incentivized agriculture lending, built stronger institutions, created jobs, and scalable market opportunities: 
 
__Unlocking Capital__: Our 50% portfolio guarantee to PFIs like ABSA Bank Ghana, Kwahu Praso Rural Bank, and Agave Rural Bank have directly mitigated their risk, enabling them to collectively increase their agricultural loan portfolio. For every $1 that RDF has deployed in guarantees, we have mobilized $2.50 in private capital from our PFIs. For example, Kwahu Praso Rural Bank has increased its agriculture loan portfolio by over 50% since partnering in 2024. 
 
__Strong Institutions__: PFIs that completed our ‘REMERB’ governance training have strengthened their risk management frameworks and are better equipped to serve rural clients. 
 
__Job Creation__: While we directly reached 30,000+ beneficiaries, our interventions have supported an estimated 113,526 jobs, significantly demonstrating a catalytic effect on rural employment and livelihoods. 
 
__Scalable Models__: A strategic partnership with USAID served as a critical proof-of-concept for our transformative integrated outgrower model. What began as a pilot project with VSLAs has evolved into a scalable Outgrower Loan Scheme providing market linkages, weather insurance, and tailored financing to the smallholder farmers.

Additional positive tangible outcomes from our 2020–2024 strategic period include the following:
- 81.2% of MSMEs including agribusinesses reported higher incomes, driven by yield improvements ranging from 26% to 50%.
- Among farmers, nearly 60% achieved yield gains exceeding 50%, contributing to a 57% increase in average weekly produce sales. 
 

__Does RDF Ghana apply a gender lens when it comes to its blended finance activities? If yes, could you shed some light on how this is accomplished (metrics tracked and indicators)?__

Gender inclusion is core to our operations and is systematically integrated into the design and delivery of all our interventions. This commitment is reflected in our reach, as women account for over 60% of all RDF interventions, including 76% of TA recipients and 53% of loan beneficiaries. Building on this foundation, our flagship initiative Agro Woman 360 empowers women smallholder farmers through group structures and VSLAs. By strengthening financial literacy, business acumen, and climate resilience, the program has enabled over 50% of participating women to gain greater influence and respect within their families and communities. These efforts reinforce our mission to promote inclusive growth, reduce poverty, and build resilient livelihoods across our target communities.

__Tailored Financial Solutions__: Recognizing that one size does not fit all, we design context-specific solutions. In Northern Ghana, for example, where women dominate the shea, soya, and groundnut value chains, we introduced tailored credit facilities for Village Savings and Loans Associations (VSLAs). This directly expands finance access and strategically strengthens women's pivotal role in these critical agricultural value chains.

__Rigorous Measurement and Global Alignment__: Our approach is guided by clear metrics and global standards, including alignment with SDG 5 (Gender Equality) and the 2X Challenge Criteria. We track key performance indicators such as share of women beneficiaries across products and services, land ownership and control, and economic empowerment and decision-making power. These interventions not only promote inclusion but also serve as a powerful catalyst that enhances productivity, builds community-wide resilience, and drives systemic change within rural economies.

__As an impact-driven institution in the agriculture and renewable energy space in Ghana, what gaps/opportunities do you see in the Ghanaian financial ecosystem that blended finance can help unlock?__

Despite the progress made, agriculture and renewable energy remain underfinanced in Ghana, with high perceived risks. RDF has demonstrated that by strategically integrating capital and TA, we can prove the commercial viability of these underserved markets. We see four priority areas where blended finance can unlock transformative opportunities: 
 
__Expand Access to Finance__: A critical void exists for smallholder farmers lacking access to financing due to their small size, lack of track record, or collateral. An opportunity exists for blended finance to provide first-loss capital to de-risk the investments for impact investors. This would unlock capital to scale and create formal market linkages for many smallholder farmers. Expanding credit guarantee schemes will also encourage greater lending to these underserved sectors. 
 
__Renewable Energy Transitions__: A significant gap remains in financing renewable energy for productive use in agriculture (e.g., solar solutions for irrigation, milling, drying, storage). Grants or concessional capital can cover the high upfront costs and provide TA to de-risk the technology for both provider and end-user, which could ultimately unlock commercial debt and equity. 
 
__Climate Adaptation Tools__: There is an increasing demand for agricultural insurance, solar-powered irrigation, and climate-smart inputs. Blended finance can accelerate adaptation by providing lower-cost, longer-term capital and grants. 
 
__Data and Digital Infrastructure__: Targeted blended finance solutions can address structural weaknesses in agricultural financing, particularly the lack of reliable data, which leads to high-risk premiums. Using catalytic grants to support the development of integrated agricultural platforms could attract commercial lenders into the space.

__What does the future look like for RDF Ghana? How will your strategy and interventions evolve going forward? What role do you see yourself playing to help increase financing flows to the agriculture sector, which comparatively remains underserved?__ 
 
Transformative changes in rural economies require strong strategic collaboration. Going forward, we are looking to foster partnerships with like-minded investors, development partners, and private sector actors. Through these partnerships, we would amplify our collective impact, crowd in significant private investment, and drive the systemic changes needed to empower rural communities. Our collaborative efforts will concentrate on three strategic pillars:
 
__Build Resilient and Integrated Value Chains__: By integrating financing with targeted TA, we will strategically partner with agriculture actors, input suppliers, and off-takers to create viable models that de-risk the entire chain, ensuring access to quality inputs, training, and guaranteed markets. 
 
__Unlock Institutional Capital__: We will position ourselves as a trusted intermediary that can bundle smaller, risky agricultural loans into larger, more structured investment opportunities for institutional investors who seek impact and return, but lack the capacity to deal with fragmented, small-ticket transactions. 
 
__Champion Climate-Smart and Inclusive Finance__: We are committed to embedding climate resilience and gender inclusion at the heart of rural finance. We are looking to achieve this by:
- Scaling Proven Practices – Expanding our Integrated Soil and Fertility Management (ISFM) program to promote sustainable land use.
- Minimizing Climate Shocks – Broadening access to affordable agricultural insurance for smallholders.
- Advancing Gender Inclusion – Intensifying our targeted interventions to increase the economic participation of women and youth.
- Solar-Powered Agriculture – Focusing on solar-powered solutions for irrigation and other productive agriculture uses.

RDF Ghana Member Spotlight with Yaw Oppong

Media Development Investment Fund (MDIF) is a mission-driven investment fund that provides debt and equity financing, alongside strategic business advice, to independent media and information ventures. For 30 years MDIF has invested in independent media around the world providing diverse news and facilitating the exchange of information and views needed to build free, thriving societies.

We spoke with Patrice Schneider, Chief Strategy Officer about how MDIF engages in blended finance, how they measure impact, gaps and opportunities in the blended finance market, and more.

__What does MDIF do and how does it engage in blended finance?__ 

In our blended finance approach, philanthropic capital plays a catalytic role. Grant funding, guarantees, and concessional capital allow us to crowd in private investors. Crucially, we use blended finance not just to manage risk, but to enable investments where market-rate returns are less feasible, but the societal value is high. We advocate for a third way of media financing that fills the space between grants and commercial capital and recognizes the public value of independent information often overlooked by the market.

As leading economists, including Nobel laureates Joseph Stiglitz and Daron Acemoğlu, have [written](https://informationdemocracy.org/wp-content/uploads/2025/09/The-Economic-Imperative-of-Investing-in-Public-Interest-Media.pdf): “Access to reliable information is the fundamental resource that fuels our 21st century economy (…), no less than previous eras relied on the power of steam or coal for industrial development.” However, despite its essential role, the independent media sector remains systemically overlooked in impact investing. While conventional media investment often prioritizes profit at the expense of public interest, eroding standards and weakening the sector’s mission, our work helps ensure this critical infrastructure receives the long-term investment it needs to serve the public good.

__MDIF is celebrating its 30th anniversary this year – and blended finance has been part of your strategy since the very beginning. What achievements are you proud of?__ 

With 30 years of experience, MDIF has been investing in independent media and information ventures long before terms like “impact investing” or “blended finance” entered the mainstream. From the outset, we’ve combined grants, concessional funding, and commercial capital to support public-interest media with financing aligned to their mission.

Our achievements are best reflected in the long-term impact of our clients. Since 1996, we’ve [invested](https://www.mdif.org/impact/track-record/) $270.9 million in debt and equity across 157 media and information companies in 50 countries. Many have grown from startups into trusted national institutions, withstanding political pressure, navigating economic shocks, and seizing opportunities to expand their reach and impact.

They inform millions, hold power to account, support democratic participation, and help drive progress in their communities. That enduring contribution to more informed, resilient societies is the legacy we are most proud of.

__Can you describe one or two blended finance transactions that MDIF has been involved in?__ 

One example is Plūrālis, a media investment vehicle that provides mission-driven, blended capital and strategic media growth expertise to independent media in Central and Eastern Europe to support media plurality. Managed and co-funded by MDIF, it brings together a coalition of prestigious European media companies, foundations, and impact investors. Its blended structure combines concessional and grant capital from philanthropy, industry expertise from leading media organizations, institutional capital interested in impact, and contributions from private wealth seeking both financial and societal returns. To expand access to capital, MDIF partnered with leading German ethical bank GLS to issue Europe’s first impact bond for media plurality.

Another example is MDIF Media Finance (MMF), a blended-value loan fund providing affordable loans to independent media in OECD-DAC countries, launched with the backing of Sida, the Swedish International Development Cooperation Agency. Through a 55% first-loss guarantee, Sida enabled MDIF to raise capital from private investors, reducing their risk exposure while allowing MDIF to expand financing for independent media in challenging environments.

These transactions illustrate how blended finance can align public and private capital behind a common goal: ensuring that independent media have the resources to serve the public interest, even when the market alone falls short.

__How do you measure the impact of your blended finance activities?__ 

Blended finance runs through MDIF as an organization, as well as specific funds, so the impact of MDIF as a whole is a reflection of the impact of our blended finance activities. Our investments strengthen builders of informed societies so that they can fulfil their vital role—sharing information that drives change, from new laws to better lives. [Research](https://www.mdif.org/wp-content/uploads/2023/07/MDIF-The-role-of-media-Driving-change-towards-the-SDGs.pdf) shows that free, viable, and diverse media are essential for democracy and human progress. Their work supports peace, justice, and strong institutions under Sustainable Development Goal (SDG) 16.10, while advancing progress across all SDGs.

We [track](https://www.mdif.org/impact/our-impact/) impact on two levels. First, we assess how our financing and strategic support help strengthen our clients—looking at metrics such as revenue growth, reach, or operational resilience. Second, we examine how our clients contribute to society—whether they are informing public debate, exposing corruption, enabling civic participation, or holding power to account. These findings are published [annually in our impact reports](https://www.mdif.org/impact/annual-reports/), combining data with case studies that show what independent media can achieve when they have the capital to support their mission.

__What gaps or opportunities do you see in the blended finance market?__ 

While there is growing recognition of blended finance, impact-first funding continues to fall short, especially for sectors like independent media that are essential to democratic resilience but difficult to serve through purely commercial models.

A key gap is the lack of flexible catalytic capital. Much of the current market is designed to reduce risk for private investors, rather than to enable impact-first investments. This limits the ability to reach sectors that deliver high public value but can’t promise market-rate returns. In MDIF’s case, blended finance is not simply about risk adjustment. It’s about making transactions possible where they otherwise would not be, due to structural market failure.

We believe what’s needed is not just more blended finance, but the growth of an *[ethical financial sector](https://medium.com/@patrice.schneider/funding-democracy-the-ethical-financial-sector-and-independent-media-06554c691910)*: a space for investors, donors, and financial institutions willing to prioritize public-interest outcomes over purely financial performance.

__How do you see MDIF’s blended finance activities evolving in the future?__ 

As information becomes increasingly central to how societies and economies function, the need for long-term, mission-aligned financing for independent media will only grow. Yet market failures persist. MDIF will continue to evolve our blended finance activities to meet this growing structural challenge.

We see a future where blended finance is not just a mechanism to de-risk investment, but a core strategy for enabling access to reliable information, especially in contexts where commercial capital alone cannot deliver. For MDIF, this means continuing to mobilize flexible, catalytic capital and structuring it in ways that reflect the unique realities of media businesses: long time horizons, non-linear growth, and a public service mission that often resists easy monetization. We will also continue to expand the role of the ethical financial sector, building partnerships with donors, development finance institutions, and values-driven investors who understand that supporting independent media is not just a democratic imperative, but an economic necessity.

Learn how Media Development Investment Fund engages in blended finance, how they measure impact, gaps and opportunities in the blended finance market, and more.

MDIF Member Spotlight with Patrice Schneider

Media Development Investment Fund Member Spotlight with Patrice Schneider

Standard Chartered is a global bank connecting corporate, institutional, and affluent clients to a network that offers unique access to sustainable growth opportunities across Asia, Africa, and the Middle East.

According to Convergence Market Data, Standard Chartered is one of the most active private investors in blended finance, working with multilateral development banks (MDBs), development finance institutions (DFIs), governments, and philanthropy on tailor-made blended finance solutions.

We spoke to John Murton, Senior Sustainability Advisor at Standard Chartered about their Blended Finance Programmes Innovation Hub, gaps and opportunities they see in the field as a commercial investor, how they see their blended finance activities evolving in the future, and much more.

__How does Standard Chartered engage in blended finance?__

Historically we have approached blended finance on a project-by-project basis, which somewhat limits our opportunity to scale. This is why in 2024 we created the Blended Finance Programmes Team with the goal of establishing programmes that can strategically deploy blended finance solutions at both speed and scale.

This team sits within Standard Chartered’s Innovation Hub, which was launched in 2023 to focus on emerging sustainability themes that are nascent but ripe for growth. Today, we have five thematic areas of innovation: Programmatic Blended Finance, Carbon Market Development, Nature Finance, Circular Economy, and Adaptation and Resilience. The Hub is helping to test and scale solutions to help advance the ecosystem in these emerging thematic areas.

Our Blended Finance Programmes team within the Hub focuses on the delivery of both ‘Country Platforms’ and ‘sectoral partnerships’. On Country Platforms, Standard Chartered supports the Just Energy Transition Partnership processes across our markets, and we’re a signatory (as part of GFANZ) to the Indonesia and Vietnam JETP, pledging to at least match initial donor pledges sized at $10 billion and $7.75 billion respectively. In 2025 we [acted as lead arranger for the Saguling floating solar project in Indonesia](https://www.sc.com/en/press-release/press-release-2/); the first project to be financed under the JETP.

In addition to supporting these already established country platforms, we are working to support the creation and development of new country platforms that address the unique needs of our markets when it comes to financing the transition. We are the only private institution to sign up to the Bangladesh Climate and Development Platform focused on both mitigation and adaption. We are also mandated to advance Lesotho’s Just Energy Transition process – the first private-sector led country platform.

On partnerships, we are actively engaging with MDBs and DFIs with the aim of establishing strategic partnership frameworks that will catalyze capital and unlock financing for multiple projects. We expect to announce some exciting partnerships over the next year!

__Can you describe one or two blended finance transactions that Standard Chartered has been involved in? In what capacity did it participate?__

In September, colleagues in Standard Chartered’s Development and Agencies Finance team successfully structured [a first-of-a-kind EUR 433 million Sustainability-Linked Loan for the Ministry of Finance and Budget, Republic of Cote d’Ivoire](https://www.sc.com/uk/2025/09/02/standard-chartered-delivers-cote-divoires-first-sustainability-linked-loan-under-new-sustainability-linked-financing-framework/). The loan was supported by the World Bank Group, acting through the International Bank for Reconstruction and Development (IBRD) and the Multilateral Investment Guarantee Agency (MIGA). Standard Chartered acted as sole lender and mandated lead arranger.

This landmark facility was the first ever transaction to combine both first-loss and second loss guarantees from IBRD and MIGA, marking a significant milestone for the World Bank Group’s new Guarantee Platform. IBRD’s first loss policy-based guarantee and MIGA’s second-loss non-honouring of sovereign financial obligations were combined to achieve a total comprehensive World Bank cover level of 95%.

Arranged under Côte d’Ivoire’s Sustainability-Linked Financing Framework launched in June 2025, the sustainability-linked loan was structured to include a margin ratchet, linking financial conditions to clear sustainability performance targets in renewable energy (excluding hydropower), deforestation prevention, and reforestation. The framework will support efforts to meet the country’s goal to reduce carbon emissions by over 30% by 2030 and is expected to help boost resilience to climate impacts relating to agriculture. Furthermore, the incentive structure enabled the government to access long-term, competitive, and essential financing to advance their national climate resilience agenda. The transaction effectively showcases how collaborative innovation can help mobilize capital efficiently and support credible models for sovereign sustainable finance that can be replicated.

Looking to Asia, in 2024 Standard Chartered was the lead arranger in the refinancing of an IBRD loan to the State Bank of India (SBI) to support India’s national Grid-Connected Rooftop Solar (GPRV) programme. Originally launched in 2016, the programme, through SBI on-lending, funds photovoltaic installations to commercial and industrial consumers, that provide clean energy and reduce greenhouse gas emissions by displacing more expensive and carbon-intensive thermal generation.

The refinancing transaction included a 95% comprehensive guarantee from MIGA to protect against the risk of non-honouring of financial obligations by a state-owned enterprise for up to 10 years. By guaranteeing the refinancing, this project showcases an ‘originate to refinance’ model, an approach recommended by the Private Sector Investment Lab, launched by the World Bank Group in June 2023 to identify barriers and find potential solutions to unlock private investment in developing countries. Furthermore, by transferring portfolio risk from the World Bank balance sheet, following the initial de-risking of a nascent sector, to commercial lenders it frees up World Bank capacity to lend into new sectors and projects. The [financing](https://www.miga.org/press-release/miga-supports-innovative-solar-rooftop-systems-india) successfully helped SBI to reduce its borrowing costs and diversify its sources of borrowing.

__How do you measure the impact of your blended finance activities? What does that impact look like?__

We’ve been publishing our [Sustainable Finance Impact Report](https://www.sc.com/en/uploads/sites/66/content/docs/sustainable-finance-impact-report.pdf) since 2020 to highlight the tangible impact of this work, and key outcomes across our markets. This report quantifies the environmental and social outcomes of our sustainable finance activities, ranging from renewable energy capacity installed to social infrastructure supported.  Importantly, the report is subject to external assurance and aligned to ICMA’s Harmonised Framework for Impact Reporting.  In 2024 we were proud to report a Sustainable Finance asset portfolio of $23.3 billion across 439 projects in 51 markets. This was a 32% year-on-year increase from $17.6 billion in 2023.

Blended finance transactions are currently not covered in our sustainable finance impact report in their own right. Such transactions are inherently complex - and often bespoke - structuring solutions that can be difficult to capture systematically. However, there is significant overlap between our sustainable finance work and our blended finance work across the bank as both aim to advance high-impact projects that deliver meaningful sustainable development outcomes.  In many cases, projects supported through blended finance solutions will already be reflected within our sustainable finance impact reporting, including key metrics such as jobs created, emissions avoided, renewable energy capacity etc.

Looking ahead, our intention is to evolve our approach by potentially consolidating impact measurement for transactions across our innovation hub, featuring our blended finance programmes, debt-for-nature swaps, and outcome-based bonds for example. This would enable the Hub to set targets that can be more clearly measured, tracked, and reported. For the Blended Finance Programmes team this may include, in addition to those metrics above, the blended finance effectiveness of the transaction, such as dollars of private sector money mobilized per concessional dollar. We would expect to apply the same principles we use today: portfolio-level reporting and project-level reporting, attribution of impacts based on our financing share, and a commitment to transparency and credibility. That means being clear about whether impacts are realized or estimated, avoiding double-counting, and disclosing the methodologies used where estimates are applied.

__As a commercial investor in the blended finance space, what gaps/opportunities do you see in the blended finance market? What unique challenges do you face while engaging with public and/or philanthropic investors?__

We still see instances where private sector lending is being crowded out, and not efficiently mobilized, even in sectors and regions which are commercially viable. Blended finance must evolve so that each dollar of concessional funding mobilizes more private sector capital. The IIF’s ‘Lifting Prudential Barriers to Mobilizing Private Capital for Development Finance’ Policy Paper highlighted that every dollar every dollar committed by MDBs has only mobilized 50 cents of private capital in recent years. This must grow very significantly.  To achieve this, we need to make better use of effective de-risking tools such as first loss guarantees and price support mechanisms.  And we need to structure de-risking mechanisms so that lenders become comfortable with certain risks and concessional funding over time becomes less necessary.

At the same time, we are currently seeing an increase of blended finance solutions and models that have worked. Reports such as the Sustainable Markets Initiative and Investor Leadership Network’s ‘Blended Finance Best Practice’ and Convergence’s [Scale Private Investment Mobilization Project](https://www.convergence.finance/standardization) have been standout example of collating such efforts. There is a real opportunity to now take such solutions and replicate and scale into new themes and markets.

To maximize these efforts, we must engage new types of investors such as philanthropies, sovereign wealth funds and local capital markets, that can play critical roles across the life cycle of blended finance solutions. For example, philanthropies are able to contribute in the short term with much needed grants and technical assistance to get projects off the ground and create a viable and investable model. Sovereign wealth funds can invest in projects with long-term patient capital which provides stability and security for investors. Local Capital Markets can then offer exit strategies and help projects to refinance at better rates, freeing up capital to be recycled into new projects. The size of these untapped pools of capital is staggering and will be key to ensuring the future resilience of blended finance solutions in light of recent geo-political shifts and to widening the pools of supply.  According to Africa Finance Corporation’s recent ‘State of Africa’s Infrastructure Report 2025’ there are over $4 trillion in domestic resources on the African continent which are not currently being leveraged.

__How do you see Standard Chartered blended finance activities evolving in the future?__

Standard Chartered is committed to effectively deploying blended finance solutions to themes and geographies where it is most needed to help make projects bankable and crowd in private sector investment. We want to continue to be at or near the top of Convergence’s league tables, evidencing efforts to use blended finance to support our sustainable finance goals, and long-term value creation for our markets. As our CEO has said, *sustainable finance isn’t just business that’s good, it’s good business*.

One opportunity we are currently very excited about is our mandate with ‘His Majesty King Letsie III Just Energy Transition Limited’ an SPV looking to form a first-of-a-kind private sector led country platform in Lesotho. The initiative, endorsed by His Majesty and the government, is designed to mobilize different pools of capital to finance a portfolio of both generation and transmission projects to support the delivery of Lesotho’s NDC and Mission300 Compact. The opportunity represents a unique case study for a land-locked least developed country to leapfrog from an energy importer to an exporter of clean power, supporting domestic and regional energy stability and security.

Similarly, we see great potential for the Innovation hub to continue to incubate new and exciting blended finance solutions to support emerging themes within the sustainability ecosystem such as adaptation financing and [circular economy](https://www.sc.com/en/press-release/standard-chartered-appoints-andrew-morlet-as-senior-advisor-circular-economy/) projects. Watch this space!

Learn about Standard Chartered's Blended Finance Programmes Innovation Hub, gaps and opportunities they see in the field as a commercial investor, how they see their blended finance activities evolving in the future, and much more.

Standard Chartered Member Spotlight with John Murton

Bolivian Investment Management Ltd (BIM) is an impact investments manager with over 25 years of experience creating and managing 14 investment companies and specialized funds seeking a positive impact beyond financial return.

We spoke to Daniel Maldonado, Investor Relations Officer at BIM about how they engage in blended finance, how they measure impact, their priority sectors, and more.

__Can you tell us about BIM and how you engage in blended finance?__

BIM, established in 1997, is one of six companies within the Panamerican Group, a financial group established in 1994 in Bolivia. BIM was founded as an asset manager with a focus on investments that create impact beyond financial returns. In its early years, BIM managed multi-sectoral funds. However, in 2007, with the launch of Locfund—a regional local currency microfinance investment vehicle focused on Latin America and the Caribbean—BIM shifted its focus exclusively to the microfinance sector.

Although the term blended finance was not widely used in 2007, when the first version of the vehicle—Locfund L.P.—was launched, the fund’s structure already reflected many of its core principles. It was able to attract two private investors, drawn by the potential impact outcomes of Locfund. However, this interest was made possible only because those investors had previously worked alongside public capital providers.

The track record built through this initial experience allowed the management team to maintain relationships with prior investors. Still, in the successor vehicle, the only private investor represented just 4.8% of the total capital raised. Despite the positive financial and impact results of Locfund I, raising additional private funding for Locfund II proved to be a challenge.

By 2020, with more than 12 years of successful operations, the new and current version—Locfund Next—was launched. This iteration managed to raise a larger pool of capital and succeeded in bringing in private foundations whose participation was both material and catalytic to the fund’s launch. However, these foundations had impact mandates embedded in their bylaws, and Locfund Next continued to face difficulties in attracting "pure" private investors—those motivated primarily by risk-adjusted financial returns—in the financial inclusion space in Latin America and the Caribbean (LAC).  

Today, the effort to attract private capital remains ongoing. Experience has shown that when targeting private investors willing to take development-related risks in less conventional markets, a strong track record and critical mass are essential. Only then can vehicles like Locfund Next align with the risk-return expectations of private capital.

__Can you tell us more about Locfund Next? What are some of the outcomes/expected outcomes?__

Although the fund is in its fifth year of operations, it is expected to deliver the projected financial returns by its 10th anniversary.

Locfund Next is structured as an evergreen-like fund, allowing shareholders to enter and exit at the end of defined equity stages. The initial equity stage spans 10 years, with each subsequent stage lasting five years.

Preliminary results from the first cohort of equity investors have been positive, sparking renewed interest from potential investors. As of June 2025, Locfund Next has built a robust capital structure with the participation of 16 investors, including six purely private investors. All 16 investors, though, have at the core of its mission, the requirement of development outcomes. 

During this period, the fund has disbursed over $380 million across 279 transactions, reaching a total of 61 microfinance institutions (MFIs) throughout the region. Locfund Next has consolidated its position as a regional leader, becoming the Microfinance Investment Vehicle (MIV) with the widest MFI outreach at the same time, operating concurrently in 15 countries.

Furthermore, in alignment with its core development and impact mandate, Locfund Next was able to raise technical assistance resources from the same investors, in order for this fund to be deployed to the microfinance institutions to strengthen areas such as gender equality, asset and liability management, and corporate governance, among others. To date, Locfund Next has completed 147 Technical Assistance initiatives across the region through its Technical Support Facility – TSF, reducing the risk of the underlying portfolio of the fund.

This momentum is expected to attract greater participation from private investors during the second equity stage, anticipated around 2029–2030. 

__Can you tell us more about the challenges you’ve faced with attracting institutional investors to Locfund Next?__

The first challenge relates to scale. Both the size of the fund and the individual investment tickets must align with the mandates of institutional investors. Since the launch of Locfund I in 2007, and through the consistent growth of Locfund II and now Locfund Next, this challenge has been progressively addressed, resulting in a vehicle with sufficient critical mass to appeal to institutional capital.

The second challenge lies in the limited familiarity most institutional investors have with the microfinance sector. This often necessitates the inclusion of additional risk mitigation mechanisms to make the investment case viable. To address this, BIM has explored several alternatives, including the use of partial guarantees from development finance institutions (DFIs). These guarantees could, in turn, be supported by technical assistance funding from other DFIs—effectively creating a dual-layered blended finance structure to enhance investor confidence and facilitate further growth of Locfund Next’s operations. 

__How do you measure the impact of your blended finance investments?__

Given the nature of microfinance, Locfund Next’s portfolio inherently generates impact across multiple indicators. The fund focuses on attending to underserved populations through the microfinance institutions it supports, reaching over 40% of end clients located in rural areas across the region and targeting more than 50% of women among its final beneficiaries.

Locfund Next also aims to support the most vulnerable segments of the population. One key indicator of this is the average loan size to end clients, which currently stands at $1,400, reflecting the fund’s reach to low-income borrowers.

__What role do you see blended finance playing in the microfinance industry in LAC?__

The microfinance industry in LAC remains a relatively small segment within the broader financial systems of each country. The total outstanding microfinance portfolio in the region is estimated at approximately $52 billion, but there are around 132 million people without access to formal financial services. The industry has maintained a steady annual growth rate of around 10%, driven primarily by unmet demand. To sustain this level of growth, the sector requires approximately $5 billion in fresh capital each year.

Unfortunately, public investors alone are not able to meet this financing need, underscoring the critical role of blended finance as a catalytic solution.

The encouraging news is that, where managed effectively and with a clear focus on financial inclusion, the microfinance sector has consistently delivered positive and stable performance. In many cases, financial indicators within the industry are not only healthy but also outperform those of the traditional financial system. These results provide a compelling case for further blended finance transactions, where private investors can engage under conditions that align with their risk-return expectations, while also contributing to inclusive development in the region. 

__Do you apply a gender lens in your blended finance activities?__

Yes. While microfinance is inherently aligned with gender lens investing, BIM has made a deliberate effort to further emphasize this focus. As a result, Locfund Next was granted the status of a 2X Challenge Flagship Fund, and BIM recently became a signatory of the UN Women’s Empowerment Principles.

In practice, all microfinance institutions (MFIs) that Locfund Next has worked with are able to identify the proportion of women among their end-clients and the composition of their portfolio by gender. This gender-disaggregated data is monitored by Locfund Next on a monthly basis to ensure a clear understanding of the fund’s outreach to this key segment. On average, more than 60% of the end-clients served through the portfolio are women.

__How do you see BIM’s blended finance activities evolving in the future?__

We believe that our strong 15+ year track record has helped build a compelling case for attracting greater private sector participation. This has been achieved not only through the positive financial and impact outcomes of Locfund, but also by demonstrating the resilience and long-term sustainability of the microfinance industry. Looking ahead, we are confident that within the next five years, we can significantly expand private investor involvement, targeting a share of at least 50% among Locfund Next’s key stakeholders.

__What are some opportunities you see for blended finance in Latin America? What are some challenges?__

Large players, including global investment banks, have begun exploring investment opportunities more actively in so-called “exotic” markets. Latin America, in particular, has demonstrated its ability to deliver attractive returns with balanced and manageable risk profiles. Public records indicate that blended finance structures in the region have averaged issuance sizes of approximately $150 million, underscoring the growing appetite and scalability of such instruments. 

Sectors such as financial inclusion, renewable energy, and circular economies stand out as key industries capable of absorbing substantial amounts of capital while offering compelling returns. The success of previous blended finance structures led by these institutions paves the way for future opportunities to mobilize private capital into the region.

However, Latin America is also characterized by a history of political volatility and recurring episodes of instability. These challenges can deter more conservative investors, especially when assessing opportunities that seek to combine financial returns with broader development outcomes.


Learn how BIM engages in blended finance, how they measure impact, their priority sectors, and more.

BIM Member Spotlight with Daniel Maldonado

The Blended Finance Company (TBFC) is a full-stack service provider for blended finance transactions enabling commercial investors to deploy significant capital while generating sustainable returns, and concessional funders to maximise their catalytic leverage.

We spoke to Nirav Khambhati, Partner at the Blended Finance Company about how they engage in blended finance, gaps and opportunities for blended finance in Asia, advice for those wanting to engage in blended finance, and more.

__1. Can you tell us about the TBFC’s mission and how it engages in blended finance?__ 
TBFC exists to reduce the Sustainable Development Goals (SDG) funding gap by changing how capital is mobilized and utilized in the development sector. Our mission rests on a two-fold approach.
First, we focus on increasing the volume of commercial capital flowing into development efforts. We do this by deploying government and philanthropic capital catalytically, creating structures that improve the risk-return profile for private investors in otherwise underserved sectors and markets.

Second, we enhance the effectiveness of government and philanthropic capital by shifting the emphasis from inputs to outcomes. We help public and philanthropic funders design more strategic, results-focused interventions that drive systemic change.

Finally, TBFC serves as an end-to-end mobilizer—providing everything from transaction feasibility assessment and structuring to fundraising, execution, and lifecycle management. A critical part of our value lies in convening the right stakeholders, whose aligned participation is essential for blended finance transactions to materialize. We serve four core stakeholder groups, including governments, donors and philanthropic institutions, investors, and enterprises (for-profit and non-profit).

__2. What type of blended finance transactions or structures has your team been involved in recently? Any transactions you’re particularly proud of?__ 
In less than two years , our team has already enabled blended finance transactions across a wide range of sectors including livelihoods, climate, agriculture, health, and education. We’ve designed diverse instruments tailored to specific challenges, including guarantees, subordinated debt, technical assistance, impact-linked incentives, outcome-based funding, pooled philanthropic facilities, and investment platforms, among others.

Some of our most meaningful transactions have tackled long-standing financing barriers for underserved segments, such as unlocking credit for students from low-income families and supporting women entrepreneurs through de-risked lending models. In each case, we have used blended structures to shift incentives, reduce risk, and increase confidence in these segments as viable investment opportunities. 

One example is Aspirational Pathways for Youth Readiness and Employment (ASPYRE) a first-of-its-kind Skill Loan Facility that provides youth from low-income households with access to affordable credit to pursue market-relevant skill development programs. TBFC played an end-to-end role in designing and enabling this initiative. We began by deeply understanding the barriers to credit access for skilling, then structured a financial product that aligns the incentives of students, training providers, financial intermediaries, and philanthropic funders. We shortlisted mission-aligned partners, mobilized philanthropic capital for credit enhancement, and created a templatized approach that allows for efficient onboarding of new stakeholders. ASPYRE is now live and already benefitting underserved youth, with additional training providers, lenders, and philanthropic contributors continuously joining the platform.

We also find ourselves increasingly involved in outcome-focused initiatives such as those aimed at creating aspirational livelihoods for youth or scaling regenerative agriculture practices. These efforts often rely on instruments like outcome-based funding or impact-linked incentives that help improve accountability and align funding with results.

Another area of pride is expanding the blended finance ecosystem by bringing in new participants, especially local actors, such as a regional bank, a philanthropic trust, or a grassroots enterprise.

__3. Based on the Blended Finance Company’s involvement in blended finance, what gaps or opportunities do you see in the overall blended finance market in Asia?__ 
__First, there is limited understanding of blended finance among key local stakeholders, particularly subnational governments and local philanthropic actors.__ Wealthy individuals and family foundations in the region tend to operate at either end of the spectrum: they provide traditional grants or make impact investments expecting market-rate returns. The middle ground, where capital can be structured to optimize the trade-off between impact and financial returns, is often misunderstood or overlooked. There is a significant opportunity to engage this segment through targeted education, demonstration projects, and collaborative structuring that show how blended finance can amplify the effectiveness of their capital.

__Second, Asia needs more entities that can hold blended finance transactions end-to-end.__ Blended transactions involve diverse stakeholders, without a trusted intermediary who can align incentives, bridge communication gaps, and manage the transaction lifecycle, deals often stall or become too expensive and complex to execute. This is a role TBFC was purpose-built to play.

__Third, there is a shortage of clear, replicable, and efficient transaction models that donors and investors can easily plug into.__ Many transactions in Asia are still bespoke, overly complex, or tied to a single sector or geography. This raises costs and limits replicability. There is a significant opportunity to standardize structures, making them easier for capital providers to understand and engage with.

__Fourth, there is a need for a continuously curated pipeline of investible opportunities that are suitable for blended finance.__ A major bottleneck in sustaining stakeholder interest is the sporadic or opportunistic nature of deal flow. Governments, investors, and philanthropies are more likely to participate if they see a steady, credible pipeline of high-quality, impact-aligned, financially viable projects. Building this pipeline requires intentional effort, ecosystem engagement, and patient capital to support project preparation and design.

__4. What advice would you give to other organizations looking to enter or scale their efforts in blended finance?__ 
- __Always start with the problem__—not the capital. We often see organizations raise capital first, then search for problems to solve. The right starting point is a clearly defined problem that genuinely warrants the blending of different forms of capital—typically where risk-adjusted returns alone cannot attract sufficient private investment, but catalytic capital can make the economics work. 

- __Recognize that blended finance is still maturing as a market—it will become simpler and faster over time, but it’s not there yet.__ Blended finance transactions are complex, involving multiple stakeholders with different mandates, timelines, and constraints. Organizations that expect quick wins or look for silver bullets often end up disillusioned. 
- __Have a deep understanding of each partner’s motivations and constraints.__ One of the most overlooked aspects of blended finance is empathy—being able to see a transaction through each stakeholder’s lens, and structuring deals accordingly. The best blended finance practitioners are not just dealmakers—they are relationship stewards.
- __Commit to building the market—not just individual deals.__ There is a growing need for more actors who invest in knowledge sharing, ecosystem advocacy, and coalition building. Each transaction should not just solve a specific problem—it should also advance the field. 

__5. How do you incorporate gender considerations into your blended finance transactions?__ 
At TBFC, gender equality is deeply embedded in how we define problems, design solutions, and structure transactions. Over half of our transactions are explicitly targeted at advancing outcomes for women; in others, gender inclusion is a critical lens through which we assess broader development impact.

One initiative underway at TBFC brings affordable credit to women entrepreneurs, enabling them to build financial resilience in the face of increasing climate risks. The structure leverages catalytic capital to de-risk lending to women in sectors historically underserved by mainstream finance—combining access to capital with the capacity to withstand environmental shocks.

Even in transactions where gender is not the exclusive focus, it is a core design principle. For example, in an impact bond aimed at creating employment opportunities, we embedded specific targets and incentives to ensure high participation of women, especially in non-traditional sectors. 

Ultimately, we see gender inclusion not just as a moral imperative, but as smart development practice. When women are economically empowered, the benefits multiply across households, communities, and generations. Blended finance, with its ability to align capital with intentional design, offers a powerful mechanism to accelerate this transformation.

__6. Looking ahead, what’s next for the Blended Finance Company in 2025 and beyond?__ 
 Our foremost priority is ensuring the blended finance transactions we are currently stewarding deliver on their promise.

We believe that blended finance can unlock far greater capital flows. This fuels our ambition to take on larger and more complex transactions, including in outcome-based financing, where we believe there is significant room for scale and innovation.

Looking ahead, we intend to explore new frontiers where blended finance can be catalytic, such as __voluntary carbon markets__, __municipal finance__, and __social bonds__. 

This year we will also be expanding our work beyond India to other emerging markets. These regions face similar development challenges and share a need for localized, trusted intermediaries who can bridge the gap between capital and impact. 

Finally, we will continue to nurture the broader blended finance ecosystem. In 2024, we seeded the __Blended Finance Exchange (BFX)__ in India, a semi-formal gathering space for practitioners, funders, and policymakers to learn from one another and shape the field collectively.

__7. What emerging trends do you think we will see in blended finance in the future?__ 
One key trend we foresee is __the institutionalization of blended finance within public systems__. Governments, especially in the Global South, are starting to see blended finance not as a one-off innovation, but as a structural tool for financing development. As this mindset takes hold, we expect more formal policies, dedicated funding windows, and internal capabilities to emerge, enabling wider and more consistent adoption.

We also expect a __bifurcation in the market__, with transaction sizes increasing significantly at the upper end, while experimentation continues to grow at the frontier. Large-scale programs, particularly in areas like climate resilience, sustainable infrastructure, and health systems, will increasingly use blended structures to unlock private capital. Simultaneously, we will see newer, nimbler structures being tested to address complex and underexplored issues. Both trends are important: scale brings visibility and momentum, while experimentation fuels innovation and adaptability.

Another important shift we expect to see is __the evolution of grant-making institutions__. As the field matures, we believe more foundations, Corporate Social Responsibility arms, and development donors will embrace this middle path and use their capital catalytically.

Finally, as blended finance becomes more accessible and predictable, it will __catalyze a new generation of social enterprises and impact initiatives__. Entrepreneurs and organizations that may have previously struggled to find sustainable business models will have access to better-structured, more affordable capital. This will unlock innovation, scale, and long-term resilience, especially in areas where commercial capital has historically shied away.

We believe blended finance is foundational to solving the complex, large-scale challenges that define our time. We’re excited to contribute to this future by helping shape the market, build trust among stakeholders, and demonstrate what’s possible when capital is blended with care, creativity, and purpose.

Learn how the Blended Finance Company engages in blended finance, gaps and opportunities for blended finance in Asia, advice for those wanting to engage in blended finance, and more.

The Blended Finance Company Member Spotlight

The Blended Finance Company Member Spotlight with Nirav Khambhati

The Development Bank of Rwanda (BRD) provides long-term financial services to support Rwanda's development. Since 1967, BRD has driven sustainable economic transformation and prosperity in Rwanda. Its mission is to finance projects that align with Rwanda’s 2050 vision, socio-economic goals, and global Sustainable Development Goals by offering affordable, long-term, and customized development finance.

We spoke to Fernand Kamanzi, Head of Strategy, Research, M&E, and Resource Mobilization at BRD about their work to help achieve the Sustainable Development Goals (SDGs) in Rwanda, how they engage in blended finance, how they measure impact, their gender strategy, and much more.

__Tell us about BRD’s mandate and how your strategy encourages capital mobilization to the SDGs.__ 
BRD plays a crucial role in the economic development of Rwanda, with a mandate focused on financing projects that contribute to sustainable development.

The Bank focuses on sectors that are underfunded by traditional financial institutions, such as social infrastructure, agriculture, affordable housing, renewable energy, education, digital economy, green finance, and export. To effectively link its strategy with capital mobilization toward achieving the SDGs, BRD has adopted several innovative approaches:

- __Sustainability-Linked Bonds (SLBs)__: Unlike traditional bonds where proceeds are earmarked for specific projects, SLBs incentivize borrowers by linking interest rates to their performance against predefined sustainability targets. This mechanism encourages BRD to enhance its environmental, social, and governance (ESG) compliance while simultaneously attracting investors interested in sustainable finance.

- __Focus on Key Performance Indicators (KPIs)__: KPIs include, increasing the percentage of participating financial institutions (PFIs) demonstrating robust Environmental and Social Management System (ESMS) implementation to 75% in 2028 from 0% in July 2023, increasing the number of loans to women-led SMEs among total SME loans to 30% in 2028 from 15.4% in 2022, and increasing the cumulative number of affordable housing loans extended or refinanced by PFIs to 13,000 in 2028, from 544 in 2022. By setting measurable targets, BRD not only demonstrates its commitment to sustainable development but also provides transparency and accountability to investors.

- __Innovative Credit Enhancement Mechanism__: Collaboration with the World Bank through credit enhancement mechanisms allows BRD to reduce risks associated with bond issuance. By leveraging International Development Association (IDA) funds as collateral, BRD can lower borrowing costs and attract a broader range of investors. 

- __Contribution to Capital Market Development__: The successful issuance of SLBs not only benefits BRD but also contributes significantly to Rwanda's capital market development. We contributed towards deepening the capital markets by putting out a new asset class on the market and having a 100% retail allocation policy.

__BRD is among the innovative local development banks in Africa and over the past 12-18 months you’ve issued 2 sustainability-linked bonds (SLB) supported by the World Bank’s IDA private sector window. What was the motivation for structuring these issuances, and what gap were you aiming to fill in the market?__ 
One of the primary motivations for issuing SLBs is to align financial instruments with the SDGs. By structuring these bonds, BRD aims to attract investments that contribute directly to sustainable development in Rwanda, particularly in infrastructure and social projects.

The issuance of SLBs also provides BRD with an innovative financing mechanism that allows access to capital from investors who are increasingly prioritizing ESG criteria in their investment decisions. This trend reflects a broader shift in the global financial landscape where investors are looking for opportunities that not only yield financial returns but also generate positive social and environmental impacts.

The backing of the World Bank’s IDA private sector window adds credibility and reduces perceived risks associated with investing in emerging markets like Rwanda. This support enables BRD to offer more favorable terms on its bonds, making them attractive to a wider range of investors.

By issuing SLBs, BRD also aims to fill the gap between financing needed for sustainable projects and the available funding sources by mobilizing private sector investments into projects that may otherwise struggle to secure funding due to perceived risks or lack of investor interest.

__Tell us how the SLBs are blended and how this approach to risk mitigation translated into an increase in investor comfort and interest?__ 
The blending mechanism in these SLBs involves combining concessional finance from the IDA with market-based financing. This approach allows BRD to offer more favorable terms to investors, thereby enhancing the attractiveness of the bonds. The IDA provides guarantees/first-loss cover, which mitigates risks associated with lending to projects that may not have sufficient creditworthiness on their own. By reducing perceived risk, this mechanism encourages more investors to participate in financing sustainable projects.

__BRD has another ongoing SME-financing partnership with Rwanda Green Fund via Ireme Invest. What was the motivation for this partnership and what has been the outcome, so far?__ 
The partnership between BRD and the Rwanda Green Fund (RGF) through Ireme Invest is primarily motivated by the need to enhance access to finance for SMEs in Rwanda, particularly those engaged in environmentally sustainable practices. By collaborating with the RGF, which focuses on promoting green investments and sustainable development, we align financial support with environmentally sustainable goals. 

The Ireme Invest facility has two components: a __Credit Facility__ to provide financing for eligible projects, managed by BRD, and a __Project Preparation Facility (PPF)__ to support project preparation, managed by RGF. Furthermore, BRD provides subsidized loans from the credit facility and RGF provides grants and equity from the project preparation facility.

As of February 2025, several positive outcomes have emerged from this partnership. 

The funding provided through this partnership has enabled numerous SMEs to invest in projects that contribute positively to environmental sustainability including renewable energy projects, waste management solutions, and other initiatives aimed at reducing carbon footprints.

In addition to financial support, we have emphasized capacity building among SMEs. Training programs and workshops have been organized to educate business owners about sustainable practices, financial management, and how to effectively utilize funding for maximum impact.

The partnership has also contributed to overall economic growth in Rwanda by fostering innovation within the SME sector. As these businesses grow and thrive, they create jobs and stimulate local economies.

__How does BRD measure the impact of its blended finance investments?__ 
__Alignment with Strategic Objectives__ 
__KPIs__ 
To quantify the impact of its investments, BRD establishes specific KPIs that reflect both financial performance and social outcomes. These KPIs may include metrics related to job creation, access to finance for underserved populations (such as women-led businesses), and improvements in housing affordability. By tracking these indicators over time, BRD can assess the effectiveness of its blended finance initiatives.

__Third-Party Evaluations__ 
BRD often collaborates with independent evaluators to conduct assessments of its projects. These evaluations provide an objective analysis of project outcomes against predefined benchmarks. This process helps ensure transparency and accountability in measuring impact while also providing insights for future investment strategies.

__Reporting Frameworks__ 
The Bank adheres to established reporting frameworks such as those set by the International Capital Market Association (ICMA) for SLBs. This involves regular disclosures on how funds are utilized and the resulting impacts on targeted sectors. Such reporting not only enhances credibility but also allows stakeholders to understand the tangible benefits derived from BRD’s investments.

__Stakeholder Engagement__ 
Engaging with stakeholders—including beneficiaries, local communities, and investors—is crucial for understanding the broader impact of BRD’s investments. Feedback from these groups helps refine measurement approaches and ensures that projects remain responsive to community needs.

__Monitoring and Evaluation__ 
BRD has a department responsible for monitoring and evaluation (M&E) as well as dedicated M&E officers. The Bank also has an institutional balanced scorecard that measures its impact at an institutional level. Additionally, this year BRD has implemented an impact scoring model to accurately predict the impact of the Bank’s investments. 

__How does BRD apply a gender lens to its blended finance initiatives?__ 
The Bank collaborates with the European Investment Bank (EIB) to define strategic objectives and key performance indicators that mainstream gender equality considerations in its lending and advisory activities. This collaboration aims to enhance women’s economic empowerment in Rwanda by ensuring that financial products and services are designed with a gender-sensitive approach.

Through its partnership with EIB, BRD develops targeted advisory services specifically designed for women entrepreneurs in micro, small, and medium-sized enterprises (MSMEs). These services aim to provide guidance on accessing finance as well as business development strategies that consider the unique challenges faced by women in the entrepreneurial landscape.

Next, the Bank works with local banks and microfinance institutions to design, establish, and promote gender-intelligent financial products and services through African Women Rising Initiative (AWRI). These products are tailored specifically to meet the needs of women entrepreneurs, thereby increasing their access to finance. The initiative focuses on creating an environment where women-led enterprises can thrive through better financial solutions.

BRD also implements capacity-building programs aimed at empowering women entrepreneurs. This includes providing mentoring services that help women navigate the challenges of starting and running businesses. By equipping women with the necessary skills and knowledge, BRD ensures that they can effectively utilize financial resources available to them.

BRD is committed to championing gender equality within its operational framework. The Bank actively implements policies that support women’s access to finance, ensuring that gender equity is a core component of its blended finance initiatives. BRD’s new strategy (2024-2028) aims to increase financed Women-led SMEs by 30% share of the Bank’s portfolio by the end of 2028.

__Based on your experience in blended finance to date, what gaps do you see in the market that need to be filled?__ 
One of the primary gaps in the blended finance market in Rwanda is the limited access to capital for SMEs. Despite their critical role in economic development and job creation, SMEs often struggle to secure financing due to perceived risks by traditional financial institutions. Blended finance can play a pivotal role here by combining concessional funding with commercial investments, thereby reducing risk and attracting more private sector investment into this segment.

There is also a lack of diverse financial instruments that are specifically designed to meet the unique needs of development projects in Rwanda. Current offerings may not adequately address the requirements of sectors such as agriculture, renewable energy, and infrastructure. Developing innovative blended finance products that align with local priorities could help bridge this gap, enabling more effective mobilization of resources towards the SDGs.

Another significant gap is the need for capacity building and technical assistance for both investors and project developers. Many potential beneficiaries of blended finance lack the necessary skills or knowledge to effectively design, implement, and manage projects that attract blended finance solutions. Providing training and support can enhance project viability and improve outcomes, making it easier for investors to engage with local initiatives.

The regulatory environment in Rwanda is supportive when it comes to blended finance, however, it can be improved. There is a need for clearer policies that support blended finance mechanisms, including tax incentives or guarantees that encourage private sector participation. Strengthening these frameworks would facilitate greater investment flows into priority sectors while ensuring alignment with national development strategies.

Lastly, there is a significant gap in data availability regarding the impact of blended finance investments. Investors require robust data to assess risks and returns accurately; however, many projects lack comprehensive monitoring and evaluation frameworks. Improving data collection methods will enhance transparency, allowing stakeholders to make informed decisions based on evidence of impact.

__How do you see BRD’s blended finance activities evolving in the future?__ 
As global awareness around ESG issues continues to rise, BRD is expected to deepen its commitment to sustainability. The Bank’s current strategy emphasizes mainstreaming ESG practices within financial institutions and increasing financing for women-led businesses and affordable housing. This focus will likely lead to more SLB issuances and other financial instruments that prioritize sustainability metrics. By aligning its financing activities with international standards such as those set by the CMA, BRD can enhance its credibility and attract more investors interested in sustainable finance.

BRD’s successful inaugural SLB issuance demonstrates the potential for domestic capital markets in Rwanda. The Bank is likely to continue leveraging these markets to raise funds while reducing reliance on international credit lines. As local investor interest grows, evidenced by the oversubscription of both SLBs, BRD may implement targeted campaigns to engage retail investors further. This could include educational initiatives about blended finance products, thereby fostering a more robust investment culture within Rwanda.

The partnership between BRD and the World Bank has been instrumental in enhancing the former’s capacity for blended finance initiatives. Future collaborations with international financial institutions will be crucial for accessing additional resources and expertise. Such partnerships can facilitate knowledge transfer regarding best practices in blended finance, enabling BRD to innovate further in structuring financial products that meet both local needs and global standards.

Given the evolving landscape of sustainable finance, BRD is likely to explore new financial instruments beyond SLBs that can attract diverse investor bases. These could include green bonds or social impact bonds tailored specifically for Rwandan priorities such as climate resilience or social equity projects. By diversifying its product offerings, BRD can appeal to a broader range of investors who are increasingly looking for impactful investment opportunities.

To effectively implement blended finance strategies, BRD must invest in capacity building within its team and among partner financial institutions. This includes training on structuring complex financial products, understanding risk management in blended finance contexts, and measuring impact against sustainability goals. Additionally, sharing knowledge with other regional development banks could foster collaboration and innovation across East Africa.

Learn about how BRD engages in blended finance,  how they measure impact, their gender strategy, and much more.

BRD member spotlight

Development Bank of Rwanda (BRD) Member Spotlight with Fernand Kamanzi 

Tri-Sector Associates (TSA) is an end-to-end impact firm that partners with government, private sector, and civil society organizations in Singapore and across Asia to tackle emerging societal challenges, with a focus on education/skill building, health, and climate. They do this by bringing these different sectors together through new collaboration models, including blended finance, and variations of pay for success (as a subset of blended finance), such as social impact bonds, social impact guarantees, and outcomes amplifiers. TSA utilizes a ‘for Asia, by Asia’ model to address the local nuances inherent in their work.

We spoke with Chris Glotfelter, Senior Project Leader at TSA about how they engage in blended finance, their priority sectors, challenges they have faced in the blended finance space, and more.

__How do you engage in blended finance? How has your approach evolved?__

TSA is committed to supporting the evolution of funding systems through cross-sector collaboration to ensure more (and more impactful) funding is allocated to projects that progress the Sustainable Development Goals across Asia. This requires innovative financing approaches and mechanisms, which is where blended finance comes into play. Our work focuses on three thematic areas: education/skill building, health, and climate/environment. 

As concessional capital is typically the more difficult part of the blended finance equation, especially as donor funding is being cut back, we come at it from this angle: working with foundations, family offices, and government to seed blended finance projects. This is typically the first time these organizations have waded into blended finance, so we allow them to dip a toe in by undertaking what we call a ‘sequential blended finance approach.’ Essentially, philanthropic capital goes in first to seed an opportunity and mature it to the point that it is commercial capital ready, often while structuring a mechanism to recycle the philanthropic capital into a later stage of growth or into a separate opportunity. This increases the leverage of each concessional dollar committed. Engaging with organizations in this way allows for a smoother transition into blended finance compared with the blended fund approach.

__Can you tell us about any specific blended finance projects/programs you’ve worked on?__

As a firm that began with a core focus on pay-for-success projects, later branching out to innovative and blended finance, we have quite a few examples. Two are outlined below, demonstrating how the funding models unlocked new benefits:

__A. Conservation International Recyclable Technical Assistance Facility (TAF)__ 
There is a significant pipeline of nature-based solutions (NbS) projects in the Asia Pacific region. However, many of these projects are not yet investment-ready because of knowledge gaps in the financial, operational, and technical aspects of these projects. This increases their perceived risk-level and does not fit the current preferences of NbS investors. Conservation International sought to accelerate the investment readiness of these projects and commissioned Tri-Sector to assess the landscape of potential blended finance options, taking into consideration the specific geography and nature of the issue. A technical assistance facility (TAF) was developed where capital allocated to projects would be recycled back into the TAF upon investment into the project. Through this structure, $12 million in philanthropic commitments were made, which sought to catalyze over $100 million in commercial capital for NbS projects. Due to the recyclable nature of the TAF, donors saw that their capital was highly catalytic, paying repeat dividends. Since then, 14 projects in seven countries across the region have received support from the TAF, with some being able to provide repayments back to the TAF.

__B. [Skills for Success](https://www.linkedin.com/feed/update/urn:li:activity:7247123147248816128/) Outcomes Amplifier Model__ 
Skills for Success is a pay-for-success project tackling the problem of Singaporean youth not in employment, education, or training (NEETs), by providing free-of-charge access to a skill building program with a monthly stipend to offset living cost considerations. Based on the [Outcomes Amplifier model](https://ssir.org/articles/entry/keeping_the_social_impact_going_when_a_pilot_project_ends), which was pioneered by Tri-Sector, additional funding is allocated to the program based on verified outcomes, which is then used as a pay-it-forward model to fund the next round of learners. 

In this model, Temasek Holdings (TH) and UBS Optimus Foundation (UBS-OF) provide the upfront funding to kick off the program and cover the monthly stipends. Generation Singapore, as the service provider, oversees the training program and provides soft skills training, along with placement services. Upon achieving verified outcomes, the Institute of Policy Studies (part of the Lee Kuan Yew School of Public Policy at the National University of Singapore) provides the outcomes funding to fund the next round. Capital is blended in the early stage of the program, with up to 30% of the funding coming from TH and UBS-OF, while at least 70% of the remainder of the funding comes from the government in the form of SkillsFuture funds. This cross-sector collaboration model is a key reason all the partners have bought into this project, with the view that this pilot can become replicable and scalable elsewhere in Southeast Asia.

__What innovative blended finance solutions have you recently implemented or are you currently exploring?__

Currently, we are working on a number of solutions. One of the most interesting, in relation to a key environmental challenge at present, is the use of philanthropic capital to support just transitions related to the early retirement of coal-fired power plants in Southeast Asia. The blending required here, and the additionality sought by philanthropic capital, is not straightforward and requires thinking outside the box to create a win-win-win situation for private, public, and philanthropic organizations.

__What sectors and focus areas are your priorities? Where do you see maximum potential to scale blended finance in the region?__

Recently we have seen a lot of interest in two areas: i) skill building; and ii) the intersection of climate and health. With regard to skill building, we have seen great interest in ethical income share agreements – those which do not make learners worse off than if they were able to access student loans or other educational financing – which typically requires some concessionality, rather than a pure commercial mindset. However, the area with greater potential is at the intersection of health and climate, where we are seeing an emergence of sub-themes including heat-related illnesses, water and food security, mental health impacts, and ocean-linked economic livelihoods. Although both health and climate are relatively well understood on their own, the themes at their intersection are just now coming into focus and being better understood, with new interventions being developed. Blended finance opportunities in this space will need to address how impact-first businesses can scale and become sustainable while being at the leading edge of adaptation solutions that are seen as less interesting (and commercially viable) than mitigation solutions. As a region that will be highly impacted by climate change, Southeast Asia is a strong focus in this space.

__How do you measure impact and evaluate success for your blended finance activities?__

We focus on both traditional and emerging impact indicators. On the traditional side, we track the leverage multiplier created using concessional capital to attract commercial capital. On the emerging side, we focus on the wider ecosystem impacts of blended finance, such as the new entrants to blended finance transactions and whether blended finance projects unlock wider incentives (e.g., the Monetary Authority of Singapore’s tax incentives for family offices1).

__Do you apply a gender lens in your work?__

Though we do not apply a blanket gender lens across all our work, we certainly have seen opportunities to make gender a meaningful part of the conversation. One recent example is the [Skills for Success program](https://www.linkedin.com/feed/update/urn:li:activity:7247123147248816128/) which was launched based on the Outcomes Amplifier Pay-for-Success model using funding from TH, UBS-OF, and the Institute of Policy Studies. Given females are highly underrepresented in technology-related roles in Singapore, one of the program targets was to have female participants reach parity with males over the course of the program. This has the added benefit of creating impact beyond the target beneficiaries (at-need youth), drilling down to who would benefit most from the program’s interventions.

__What are some interesting or unexpected challenges Tri-Sector Associates has faced while navigating the blended finance space?__

One of the unexpected elements that we have encountered has been large banks coming to us and wanting to do more in the blended finance space, but being faced with challenges in two areas: i) a lack of a voluminous pipeline of projects; and ii) not enough access to philanthropic capital to meaningfully support projects that are of a sufficient size to make sense for their clients. This shows us that more must be done in the ecosystem to build the components of blended finance before it can truly proliferate in the global market.

__What advice do you have for other non-profit and social enterprises interested in participating in blended finance?__

Being able to ‘speak the language’ of both commercial and concessional capital providers is critical to participating in blended finance. We find that when organizations cannot communicate efficiently, nothing gets done. If you are finding that this is the case, consider hiring an intermediary who can ‘translate’ between all the parties and create cross-sector alignment. This will naturally be an added cost, but will save time and money throughout the process, and many times is the critical factor in whether the project launches.

__Given TSA is a part of the larger Temasek Trust family, how do you collaborate with other entities internally to bring the collective experience of the Temasek group to clients and stakeholders and advance the ecosystem in Asia?__

We are so thankful to be a part of Temasek Trust’s ecosystem, which enables us to support meaningful causes across its network – both in Singapore and the wider region. Our collaborations take various forms: we introduce new ideas, they bring potential projects to us, or we co-create new initiatives. This versatile approach has been key to fostering strong partnerships, as engagement is shaped by the unique needs and opportunities of each collaboration. Likewise, our collective support for the broader ecosystem is not one-size-fits-all, as everyone requires a tailored approach to deliver meaningful impact.

The diversity of the Temasek Trust ecosystem allows us to shape projects that span commercial, concessional, and purely philanthropic capital, while drawing on deep thematic expertise. This convening capability, combined with the ability to bridge perspectives across different sectors, is one of TSA’s value-adds for our partners both within the Temasek Trust ecosystem and beyond. When like-minded partners come together with a shared purpose, the results can be truly transformative.

__How do you see TSA’s blended finance activities evolving in the future?__

As our deal sizes increase over time, we envision more engagement with multilateral development banks and development finance institutions to support the quantum of funding required to finance these projects. Naturally, this could come in the form of a fund. We are especially seeing interest from organizations regarding the management of purely philanthropic funds (e.g., technical assistance facilities), these sit outside of the typical remit of fund managers on the commercial side who are also willing to blend some concessional capital into these funds. Given our strong relationships with philanthropists, this would be a natural next step for TSA.

1. Source: [MAS](https://www.mas.gov.sg/schemes-and-initiatives/fund-tax-incentive-scheme-for-family-offices)

Learn about how Tri-Sector Associates engages in blended finance, their priority sectors, challenges they have faced in the blended finance space, and more.

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BPL is a broker specializing exclusively in credit and political risk insurance (CPRI) for financial institutions, development finance agencies, multinational corporations, and investors around the world. They work closely with their clients to structure insurance programs for those engaged in international trade, investment, and lending, primarily to protect against the risk of non-payment by borrowers but also in-country political risks. Since their founding in 1983, they have settled over 600 CPRI claims, collecting over $4 billion on behalf of their clients. 

Investing in emerging markets often comes with high real or perceived risks. In development finance, risk-mitigating instruments such as non-payment insurance and political risk insurance are crucial to help increase origination capacity and adjust the risk-return profile of transactions so that private investors can enter developing countries. In addition to private investors, more development finance institutions (DFIs) and multilateral development banks (MDBs) are benefiting from these insurance products, bolstering their balance sheets and increasing their lending appetite. 

We spoke with Harry McIndoe, Director at BPL, about how insurance is used in the development finance market, BPL’s experience in the blended finance space, advice for those interested in partnering with insurers, and more.

__Can you tell us what products you focus on and the scope of the CPRI market?__

Our core focus is Comprehensive Non-Payment Insurance. This product is similar to a silent risk participation from an A-rated or double A-rated insurer that sits behind the policyholder, thus protecting them from losses on their funded or unfunded exposures. It covers non-payment for any reason so has a very simple trigger. There are roughly 60 active insurers in this space, all of whom are rated S&P A- or higher, with a large proportion now rated AA-. By swapping the counterparty rating with that of the insurer, institutions can recognise huge benefits in terms of balance sheet management and increasing their syndication capacity. 

BPL has been at the forefront of developing the market’s capabilities in recent years, and appetite has expanded to include a wide range of underlying debt instruments and structures. Another focus area is Political Risk Insurance, whereby our clients seek to cover certain specified cross-border country risks, such as expropriation, currency inconvertibility/non-transfer, and war.

__Why did BPL decide to become involved in development finance?__

Helping mobilize finance to where it is needed most has always been a cornerstone of our work. We have been active in development finance since our inception, helping both commercial and non-commercial institutions mitigate credit and country risk exposures, enable larger ticket sizes, and manage capital/balance sheets. Increasingly, we are seeing the power of insurance in derisking development finance. It has been applied across a wide spectrum of underlying exposures and stretched tenors, in the midst of long-term and disruptive trends.

We are keenly aware that CPRI has an important, and sometimes underestimated, role to play in enabling and accelerating the flow of funds to support sustainable objectives – including the transition to a low carbon economy and the mobilization of sustainable finance to developing markets. As an insurance broker we recognize that our ability to directly influence client investments and lending decisions is limited, nevertheless our clients value our support in helping them accelerate towards sustainable objectives. Additionally, our leading market position enables us to offer incisive market intelligence and drive product innovations that support the proliferation of sustainable finance, infrastructure, investments, and ambitions.

__The use of non-payment insurance in blended finance is still niche and often provided by DFIs/MDBs themselves. How has BPL participated in the blended finance space?__

Our work with DFIs/MDBs has primarily been on projects supporting the United Nations Sustainable Development Goals (SDGs), such as financial inclusion, infrastructure, healthcare, sanitation, and utilities. While some of these institutions do issue guarantees/risk covers themselves, many work with the private insurance market to increase origination capacity and syndicate a portion of their own balance sheet exposures.

When it comes to MDBs, non-payment insurance is increasingly relevant in helping to action the recent G20 Capital Adequacy Framework recommendations, which underscores the importance of insurance for enhancing lending capacity and enabling MDBs to leverage their balance sheets. 

In addition, we are often asked to secure non-payment insurance on projects for commercial lenders where there is DFI/MDB involvement, such as project finance transactions where a DFI might be a co-insurer or lender, A/B loans, and more recently, on “repack” transactions whereby private institutional capital can be crowded in with the benefit of A/AA rated insurance coverage. 

Another area where we see engagement is on portfolio and securitization solutions, where the insurance market has considerable appetite to support DFIs/MDBs through a more programmatic approach to risk-sharing and capital management, providing significant benefits at scale.

Our insured portfolio currently stands at approximately $87 billion, with nearly 60% in developing countries. This scale gives us an accurate finger on the pulse of the market and equips us with a real-time view of market appetite across global markets and underlying project types.

__What have you learned about the role of the insurance brokers in blended finance transactions?__

MDBs/DFIs are not too different from commercial financial institution clients in terms of gleaning the best results out of the CPRI market. 

One of the challenges facing insurers in the development finance space is the risk profile of their transactions. DFIs/MDBs have a development mandate, while CPRI insurers active in the market must answer to commercial capital providers. The role of a broker is to navigate this occasional disconnect, underlining the MDB’s preferred creditor status and securing the optimal coverage at the right price, all while keeping in mind that there is a finite amount of credit risk that insurers are willing to take in certain countries.

__What advice would you give to participants in the blended finance market interested in partnering with the insurance industry?__

A potential risk factor for less experienced DFIs/MDBs when it comes to using CPRI can be a lack of understanding of the product or the insurance market. This emphasizes the importance of using a broker who understands the market and can guide them through the process – ideally one with extensive emerging market experience and a good claims track record. These factors help indicate the strength of the broker in building goodwill and relationships with the insurance market on behalf of its client. 

Another critical element when engaging with the insurance market is partnership. If participants embrace that partnership approach and transparency with the market, they can count on a long and fruitful collaboration. Indeed, we find insurers see a lot of value in projects and expertise from DFIs/MDBs and in their origination strategy. Further, insurers tend to appreciate the portfolio and market diversification that such partnerships offer them.

__How do you see BPL’s blended finance activities evolving in the future?__

The SDG funding gap is a huge area of concern that CPRI can play a vital role in bridging. According to the 2024 Financing for Sustainable Development Report, SDG financing and investment gaps are estimated at between $2.5 trillion and $4 trillion annually. At BPL, we are keen to continue building on our 40-year commitment to the development finance space and advocating for the huge value for development financiers that comes from working with the CPRI market. We expect to see much more involvement for BPL as the role of insurance in helping DFIs/MDBs meet their objectives becomes more visible and as insurer appetite becomes increasingly supportive.

Learn how insurance is used in the development finance market, BPL’s experience in the blended finance space, advice for those interested in partnering with insurers, and more.