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

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.*

*Registration is on a first-come first-served basis, with a maximum of 2 people per organization.*

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

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

AGES-REG---1200x628

__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

Deal Connect - February 2026

__Wednesday, February 4, 2026, 9:00 AM - 10:00 AM (GMT-05:00)__

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Join Convergence for an informative webinar that will connect you to a selection of blended finance investment opportunities in emerging markets. During this interactive session, Convergence members will share details about their investment opportunities that are listed on our live deal platform. This is a great opportunity to explore new and unique transactions and learn the latest developments in the blended finance ecosystem.

During the session, three opportunities will be featured:

__Plūrālis - Supporting media plurality in Europe__

Plūrālis is a blended fund that provides ‘no editorial strings attached’ equity to help secure independent ownership of media companies at risk of capture and compromise. Plūrālis makes investments in media companies where a free press is under threat that have reputation for producing quality journalism as well as companies in the broader region that might be in danger of press capture. Plūrālis also provides capacity building and technical assistance to such portfolio companies to strengthen their business and ensure continuous editorial independence.

__Spark Energy Services Limited__

Spark is an innovative financing platform for scaling commercial and industrial renewable energy and energy efficiency markets in Sub-Saharan Africa. The facility partners with local developers and provides them with streamlined construction capital (both debt and equity) to unlock their pipeline of bankable projects.

__Solon Capital Holdings Equity Raise__

Solon Community Holdings (SCH) is a platform that scales inclusive, community-centric impact across West Africa by investing at the intersection of people and planet to build more sustainable, stable and economically vibrant communities, support climate change mitigation and adaptation, and protect critical wild spaces and biodiversity.

This webinar series is exclusive to investors registered on the Convergence platform.

Join us for an informative webinar that will connect you to relevant blended finance investment opportunities in emerging markets.

acs infosession dec25 v2

We invite you to join us virtually for an information session on the [Asia Climate Solutions (ACS) Design Grant](https://www.convergence.finance/accelerator/acs).

The ACS Design Grant awards feasibility study and proof-of-concept grants for the design and launch of innovative blended finance solutions that mobilize private capital to sectors critical for climate transition and resilience in developing markets in Asia.

The current grant cycle will have a thematic focus on solutions in the clean energy, blue economy, and sustainable cities and infrastructure sectors. The solutions should leverage blended finance to mobilize local public, private, and philanthropic capital to scale climate mitigation and adaptation initiatives benefiting local communities across the Asia-Pacific region. 

Register for the webinar to:
- Learn more about Convergence’s Blended Finance Accelerator Program and the ACS Design Grant
- Gain insight into how to apply, grant eligibility, and evaluation criteria
- Get your questions answered, and more

The anchor donors of this initiative are the Monetary Authority of Singapore, Department of Foreign Affairs and Trade Australia, Olayan Group, UBS Optimus Foundation, and The Rockefeller Foundation.

The ACS Design Grant is now open. The deadline to submit concept notes is __January 11 at 8:00PM ET/January 12 at 9:00AM SGT__. Learn more and apply [here](https://convergence.submittable.com/submit).

Asia Climate Solutions Design Grant: Info Session

Join us virtually to gain insight into the application process for the Asia Climate Solutions Design Grant

Learn about the Asia Climate Solutions Design Grant

*This op-ed was originally published in [Business & Finanacial Times](https://thebftonline.com/2026/01/27/how-blended-finance-can-catalyze-economic-recovery/).*

Ghana’s economy has made a remarkable comeback after the debt default crisis of 2022, one of the country’s toughest economic periods in decades. Following elevated inflation which exceeded 50% and a dramatic depreciation of the Cedi, the government undertook broad-based reforms under the aegis of a USD 3 billion IMF-supported program. By late 2025, headline inflation stood at 5.4%, GDP growth was projected at 4.3%, and the country experienced a record trade surplus driven by strong gold and cocoa exports.

This has bolstered foreign exchange reserves, stabilized the Cedi, and put public finances on a firmer footing. Credit rating agencies have taken note, and Ghana’s sovereign rating was upgraded from restricted default to stable territory, marking a return of investor confidence.

The most recent national budget signaled a deliberate shift from crisis management to investment-led growth, marking a crucial inflection point for the economy. Fiscal savings were redirected into productive sectors such as manufacturing, agriculture, and renewable energy. Against this backdrop, and in a context of declining Official Development Assistance (ODA), the government has recognized that blended finance can serve as a catalyst to finance the country’s long-term, inclusive development.

Blended finance refers to financial structures that combine public, philanthropic, and private capital to finance sustainable development. It has gained traction in recent years as a means to leverage different types of funding to achieve development objectives, particularly in countries where traditional sources of financing may be limited or insufficient. Indeed, both of the government’s flagship economic programs, The Big Push and 24-Hour Economy, explicitly recognize the significance of blended finance.

During a recent mission to Ghana, we engaged with several government / quasi-government agencies whose mandate is to mobilize private capital.

A prime example is the Ghana Infrastructure Investment Fund (GIIF), which was set up with an anchor investment of USD 345 million from the government. GIIF’s objective is to act as a catalyst for leveraging private capital by deploying debt, equity, and mezzanine funding to de-risk projects for local and international investors.

To date, GIIF has deployed USD 365 million across 13 transactions, which in turn leveraged approximately 10x that amount in commercial financing. GIIF’s success has enabled the organization to partner with organizations like the African Development Bank  (AfDB) and Agence Française de Développement (AFD) for lines of credit, demonstrating the usefulness of country platforms to official donors, Development Finance Institutions (DFIs), and Multilateral Development Banks (MDBs).

The Venture Capital Trust Fund (VCTF) and Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) are two other models of government-led blended finance initiatives. The VCTF is a government-established fund-of-funds that deploys seed capital to de-risk investments (in the form of equity and quasi-equity) and mobilize private capital across various locally domiciled venture funds.

Thus far, the VCTF has invested USD 33 million across 14 funds, which have gone on to raise over USD 270 million in additional capital from other investors. GIRSAL, with a balance sheet capacity of USD 45 million, de-risks agribusiness loans through credit risk guarantees and technical support, helping commercial banks increase their lending to the agriculture sector. GIRSAL works with 38 partner financial institutions and has guaranteed over USD 150 million in loans for agriculture.

Similarly, the Ghana Cocoa Board (COCOBOD), one of the most important organizations in Ghana’s cocoa industry, employed a blended finance strategy that enabled them to secure a USD 600 million syndicated facility, with significant contributions from entities like the African Development Bank (AfDB), Development Bank of South Africa (DBSA), and others. A concessionary loan of USD 100 million from the Japan International Cooperation Agency (JICA) altered the risk/return tradeoff for more commercially oriented investors, drawing in notable commitments from the likes of Credit Suisse and the Industrial and Commercial Bank of China (ICBC).

In an era of substantial ODA cuts, African countries must increasingly use their own balance sheets to de-risk projects and crowd in private capital. In this respect, as evidenced through the examples above, the Government of Ghana is leading the way.

Domestic pension funds also represent a large and underutilized source of long-term capital. Ghana’s total pension assets have doubled in size over the past five years, to a total of USD 5 billion in 2025. However, exposure to alternative asset classes such as private equity, venture capital, infrastructure, private debt, and real estate remains just 0.5% of assets under management. Blended finance can play a role here to create investable products and opportunities for this major source of long-term domestic capital.

Drawing on the InfraCredit Nigeria model, there are active discussions for a related credit enhancement scheme in Ghana. This new entity will provide credit guarantees for local currency debt, thereby increasing the attractiveness for institutional investors to invest in infrastructure bonds.

Adding to this landscape is the Ci Gaba Fund of Funds, a USD 75 million innovative structure aiming to blend donor and local institutional capital to back venture and private equity funds investing in small and medium-sized enterprises. By absorbing part of the early-stage risk, Ci Gaba aims to unlock institutional investments for high-impact sectors. Taken together, these initiatives illustrate how blended finance can turn Ghana’s capital scarcity into opportunity, channeling funds where they yield the greatest economic and social return.

While the momentum is promising, Ghana can unlock even greater potential through a few targeted policy actions such as regulatory modernization, transparency & cooridnation examples of which include: 1) Legal recognition of limited partnership (LP) structures, a standard globally for private equity and venture funds, would make it easier to establish investment vehicles locally; 2) The creation of a centralized, publicly accessible pipeline of investable projects; and 3) Establishing a national project preparation facility under the Ministry of Finance or the Ghana Investment Promotion Centre could help move high-potential projects from concept to bankability.

The promise of Ghana’s next growth chapter is an economy powered not just by recovery, but by resilience and innovation. The call to action is clear: public agencies and development partners must bring catalytic funding and technical expertise to the table, and commercial investors must look beyond short-term risk to the long-term potential of one of Africa’s most dynamic frontier market.

As Ghana seizes this moment, blended finance could become the defining tool of its economic renaissance, turning fiscal discipline into inclusive development, and transforming stability into sustained prosperity.

The piece showcases how blended finance is already being utilized in Ghana and discusses the policy changes needed to support its growth in the region.

How blended finance can catalyze Ghana's economic recovery

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

We enter 2026 amidst a rapidly changing development finance landscape; ODA is under strain as public budgets tighten and countries focus increasingly on domestic priorities, while the scale of investment needed to address sustainable development continues to rise. Against this backdrop, we predict blended finance will need to evolve faster to: mobilize capital at scale, move beyond pilot approaches, and strengthen local capacity and ownership. Below, we make four predictions on how we see the market changing in the year ahead.

__1. Localization, localization, localization__ 
Just a few years ago, domestic capital mobilization was a peripheral priority for blended finance. After all, the “billions to trillions” agenda can only be realized by tapping into the deep financial markets of developed countries. Yet, amongst a rapidly changing development finance landscape, domestic private capital mobilization has become an increasingly important strategy. Convergence data reports that local capital continues to be a fraction of blended finance (under 20% of all blended finance flows), however we are seeing positive momentum, particularly from the private sector. As detailed in Convergence’s [State of Climate Blended Finance 2025](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view), local private investment increased from 17% to 19% between 2019-2021 and 2022-2024, driven by corporates and project sponsors.

Convergence has more deeply explored local capital mobilization trends on a country basis with a focus on Indonesia, the Philippines, and Vietnam, through the CC Facility Learning Hub report on [Domestic Capital Mobilization for Climate Finance in Southeast Asia.](https://www.ccfacility.org/learning-hub/domestic-capital-mobilization-climate-finance-southeast-asia-report) The report outlines how an enabling national policy environment combined with blended finance tools can support greater domestic capital in climate finance, highlighting successful examples across the region. For example, in the Philippines, supportive regulation such as the Electric Vehicle Industry Development Act helped create the right conditions for EV sector growth, while a blended $100 million financing package from the Asian Development Bank helped mitigate high upfront costs and catalyze private investment by Ayala Corporation, effectively mobilizing one of the countries' largest conglomerates into EV charging infrastructure and electric vehicles.

One approach that has increasingly been adopted is blended finance country platforms,which are country-led initiatives that mobilize development finance around national priorities and shift investment from one-off transactions to programmatic deployment. Country platforms have been applauded for their ability to i) align national development plans and policies with investment priorities, ii) aggregate projects to achieve scale, and iii) efficiently raise public, private and philanthropic capital. One of the most consistent models has been using public and philanthropic sources at the platform level while raising commercial capital on a more individual basis.

Recent examples of country platforms include Singapore’s Financing Asia’s Transition Partnership (FAST-P), which was launched in 2023. Anchored by $500 million in concessional funding from the Singapore government, FAST-P uses public and philanthropic capital to de-risk investments and crowd in commercial capital through thematic funds, with an ambition to mobilize up to $5 billion overall. Its first fund, the Green Investments Partnership (GIP), reached first close in 2025 with $510 million from a diverse group of public, private, and development finance investors, including the Monetary Authority of Singapore, Export Finance Australia, the International Finance Corporation, FMO, British International Investment, HSBC, and Temasek. Managed by Pentagreen Capital, GIP provides blended debt financing for marginally bankable sustainable infrastructure across Asia. We expect to see this trend continue in 2026, with the Green Climate Fund [announcing](https://www.greenclimate.fund/news/fourteen-new-country-platforms-announced-collaboration-gcf-drive-country-led-climate-solutions) the support of 14 new country platforms.

__2. Aligning development objectives and trade interests__ 
Fostering greater trade finance between developed and developing economies has long been one outcome of blended finance. Convergence Market Data records 109 blended finance transactions in trade finance, representing approximately $18 billion in aggregate financing.

High-income governments are increasingly seeking to align development strategies in low- and middle-income countries with the advancement of their domestic economic priorities. The United States, the United Kingdom, Sweden, the Netherlands, and Switzerland are among the countries exploring how development spending might reinforce national objectives related to trade, exports, and investment. These shifts reflect broader economic and political pressures, industrial policy priorities, and evolving global trade dynamics.

In this context, actors such as export credit agencies are emerging as potentially pivotal intermediaries at the intersection of development finance and national trade policy, given their mandate to support exports while managing risk.

A recent example is Export Finance Australia’s $100 million loan to the Emerging Africa & Asia Infrastructure Fund (EAAIF, formerly EAIF) (see Convergence case study [here](https://www.convergence.finance/resource/emerging-africa-infrastructure-fund-case-study/view)), a blended finance vehicle backed by the Private Infrastructure Development Group (PIDG) and managed by Ninety One. The financing will support sustainable infrastructure and renewable energy projects across the Indo-Pacific, particularly in South and Southeast Asia, while simultaneously advancing Australia’s trade and investment priorities in the region. The transaction illustrates how export credit agencies can bolster private investment for development outcomes while also advancing their core mandate of promoting national economic and strategic objectives

__3. Investment grade ratings, enabled by blended finance, as a prerequisite to investment__ 
As [recently explained](https://www.convergence.finance/news/yX74NqDSJrRb49zSA4pID/view) by Convergence, a key trend we expect to see more of in 2026 is the increased use of investment grade credit ratings to unlock institutional capital for blended finance structures. Institutional investors such as pension funds, insurers, and asset owners often rely on credit ratings to make investment decisions, yet many blended funds remain unrated due to structural complexity and lack of standardized methodologies. This limits the ability of larger institutional pools to participate at scale, especially in emerging markets where perceived risk is high.

Fund managers can obtain credit ratings through various approaches. Firstly, blended finance vehicles can pursue external credit ratings at the fund level. The EAAIF mentioned above is a leading example; the Fund obtained an investment-grade foreign currency long-term issuer rating of A2 from Moody’s in 2022, backed by a diversified portfolio, highly liquid assets, and highly-rated shareholders via PIDG. Together, this provided institutional investors with an independent assessment of the fund’s credit quality across a diversified infrastructure portfolio.

A second approach is pursuing an internal rating approach, and rating each project before capital deployment. Here, Impact A’s Global Fund adapted a transaction-by-transaction approach, spurred by its partnership with Legal and General’s alternative assets platform. As such, Impact A designed a credit framework closely aligned to Moody’s methodology, and ensured each deal on its lending platform could be rated using a transparent and rigorous process.

Lastly, some blended vehicles are seeking ratings for specific tranches, typically senior debt. Lendable’s MSME Fintech Credit Fund II obtained an investment-grade rating for its senior debt, supported by Lendable’s long track record and a capital structure in which 60% of capital is subordinated through junior tranches that absorb losses first. This tranche-specific approach enabled Lendable to attract fully commercial institutional investors to the company.

Convergence has identified investment-grade ratings (around BBB) as the most important driver of private investment mobilisation at scale, as reflected in three of its standardized Private Investment Mobilization Models ([PIMMs](https://www.convergence.finance/standardization)): PIMM 9 (Public Sector Blended Finance Debt Fund), PIMM 10 (Private Sector Blended Finance Debt Fund), and PIMM 5 (Project-Level Guarantees). These models demonstrate that it is possible to achieve investment-grade credit quality, and provide sufficient credit enhancement for private investors, without the conservative capital standards associated with AAA ratings typically prioritized by multilateral development banks (MDBs).

__4. Synthetic Securitizations to Unlock MDB Balance Sheet Capacity__ 
MDBs and development finance institutions (DFIs) are under increasing pressure to improve their headroom, or lending capacity, while increasing private sector mobilization targets, particularly as the US reduces its engagement in multilateral institutions. One approach to do this is via synthetic securitizations. We have seen this approach adopted by both global DFIs as well as their regional counterparts; the World Bank launched its own [securitization programme in 2024](https://www.devcommittee.org/content/dam/sites/devcommittee/doc/documents/2024/Final_DC2024-0004.pdf), while the IFC is promoting a [Warehouse-Enabled Securitization program](https://www.ifc.org/content/dam/ifc/doc/2024/WESP-Presentation-Seminar-IFC-Day-Nov-6-2024-External.pdf) to attract private investment. Concessional capital can provide additional protection; consider the recent example of the West Africa Development Bank (BOAD), which recently completed a XOF 160 billion (USD 270 million) multi-tranche securitization of a portfolio of performing non-sovereign loans through BOAD Titrisation, structured in senior, mezzanine, and junior tranches. BOAD retained the senior and junior (first-loss) tranches, while a AA+-rated mezzanine tranche of XOF 28.75 billion (around 18% of the structure) was placed with institutional investors, including a XOF 6 billion investment from the Africa Local Currency Bond Fund.The structure allowed BOAD to transfer part of the portfolio risk to third-party investors, while retaining the underlying assets on their balance sheet, with the end result of broadening local capital markets.

As the role of MDBs become even more important in the face of donor reductions, we envision securitizations playing an important role for domestic, regional, and global MDBs alike.

__Convergence’s Upcoming Work on these Topics__ 
Convergence will explore these themes further in the year ahead, beginning with the final [PIMMs](https://www.convergence.finance/standardization) Action Plan coming in Spring 2026, which identifies the most efficient and effective actions to mobilize private investment at scale and achieve the mobilization objectives in line with the outcome document of the Fourth International Conference on Financing for Development, held in Sevilla in June 2025. On the topic of local capacity, Convergence will be releasing three Country Deep Dive reports, building on the Domestic Capital Mobilization Report mentioned earlier, examining domestic capital trends in Indonesia, the Philippines, and Vietnam through the CC Facility [Learning Hub](https://www.ccfacility.org/learning-hub). Convergence will also release its Strategic Framework for Blended Finance in Spring 2026, outlining how governments can create enabling environments to scale blended finance and mobilize local capital across South and Southeast Asia.

Read our four predictions on how we see the market changing in 2026.

Four Blended Finance Trends in 2026

2025 was an exciting year for Convergence, we celebrated our tenth anniversary and hosted our inaugural [Global Blended Finance Forum](https://www.convergence.finance/news/1RCw5molHzANWIYmZS8kDX/view). To wrap up the year we’re sharing a list of our most impactful content of 2025, featuring the reports, case studies, blogs, and op-eds that our audience engaged with the most throughout the year.

## Top Report: State of Blended Finance 2025
 
Released in May, the State of Blended Finance 2025 found that the blended finance market remained steady through 2024. Blended finance deal flow was higher than the market average for the past five years, with 123 deals reaching close totaling $18 billion in financing. Deal sizes were also trending upward, with the median size increasing from $38 million (2020 - 2023) to $65 million (2024).
 
The report also found that in 2024 there was more buy-in from the private sector. Commercial capital from private sector investors outpaced development finance institutions and multilateral development banks in capital deployment, with $6.9 billion in investments in 2024.
 

[Read the report.](https://www.convergence.finance/resource/state-of-blended-finance-2025/view)

## Top Data Brief: Blended Finance for Nature-Based Solutions
 
This brief analyzes how blended finance has been used to support nature-based solutions (NbS) transactions, presenting insights from an analysis of transactions in Convergence Market Data and interviews conducted with industry stakeholders.
 
With the global annual investment gap to safeguard the natural environment exceeding $700 billion, there is a critical and urgent need to scale up financing for NbS. Public and philanthropic capital alone cannot meet this challenge. Convergence has recorded 48 blended NbS transactions over all time, totalling $4.7 billion in aggregate financing. Currently, public funds account for a total of 82% of the annual financing flows to NbS, with private finance accounting for the remainder.
 

[Read the blog to learn about key takeaways from the brief.](https://www.convergence.finance/news/7gw6dH8j0gnnFSArTS2dKK/view) 
[Read the full brief.](https://www.convergence.finance/resource/blended-finance-for-nature-based-solutions/view) (members-only)

## Top case study: Bac Ninh Waste-to-Energy Facility
 
This case study explores how the International Finance Corporation (IFC) used blended finance to improve the investability of the Bac Ninh waste-to-energy (WtE) facility in Vietnam.
 
Vietnam's waste management issues are increasingly urgent. However, the implementation of an adequate waste management system has been impeded by several factors. The resultant financing gap has created a market failure, whereby critical high-impact potential waste solutions like WtE technologies are unable to access the capital required for implementation.
 
IFC, using blended finance from the Finland-IFC Blended Finance for Climate Program alongside a market-rate loan for its own account, targeted the key market barriers to financing WtE facilities in Vietnam. Their participation, alongside grant funding support from the Government of Japan, bridged the financing gap by absorbing a level of construction and operational risk that otherwise prohibited the commercial viability of the Bac Ninh WtE facility.
 

[Read the case study.](https://www.convergence.finance/resource/bac-ninh-waste-to-energy-facility/view)

## Top op-ed: To mobilize private capital for sustainable development, we need standardization at scale
 
This op-ed by our Managing Director Chris Clubb, published in Environmental Finance, explores why standardization at scale is key to mobilizing private capital for sustainable development.
 
Chris discusses Convergence's <a href="https://www.convergence.finance/standardization">Scale Private Investment Mobilization Project</a> to standardize and scale up effective and proven Private Investment Mobilization Models, creating a framework that makes it easier for private capital to flow into developing countries for sustainable development.
 

[Read the op-ed now.](https://www.convergence.finance/news/4FrZlC4gpudxrLZVqDTQmQ/view)

## Top blog: Breaking Down the Billions: A Closer Look into Convergence’s Design Funding Program’s $2 Billion Mobilization Figure
 
This blog delves into how Convergence-supported blended finance solutions have successfully attracted substantial capital, breaking down the types of investors involved and the specific financial vehicles utilized. It also provides insights into what makes certain blended finance models effective and scalable, and highlights lessons learned from smaller-scale projects like Africa GreenCo, which showcase innovative approaches in high-impact sectors.
 

[Read the blog.](https://www.convergence.finance/news/i8cw2b4qvfrJwdie0dwm5/view)

To wrap up the year we’re sharing a list of our most impactful content of 2025, featuring the reports, case studies, blogs, and op-eds that our audience engaged with the most throughout the year.

Convergence's top articles and publications for 2025

Across the world, more than [675 million people still live without access to electricity](https://www.worldbank.org/en/topic/energy/overview), the vast majority in Sub-Saharan Africa. Yet the continent’s energy potential is immense. With solar energy now ranking among the most affordable power sources globally, distributed renewable systems,(e.g., mini-grids, agri-solar, and commercial and industrial (C&I) installations) offer a scalable path toward universal energy access.

However, mobilizing investment at scale remains a major hurdle, as [Africa currently receives under 2% of global clean energy finance](https://www.iea.org/reports/financing-clean-energy-in-africa/executive-summary). Bridging this gap requires innovative mechanisms that can attract commercial capital into high-impact sectors. This is where blended finance can make a difference, by using catalytic public and philanthropic capital to de-risk investments and crowd in private capital for sustainable, inclusive growth. 

__Proof of Concept Grant for the Mirova Gigaton Fund__

Convergence awarded a proof of concept grant to Mirova under the Gender-Responsive Climate Finance Window funded by Global Affairs Canada (GAC), for the design of the Mirova Gigaton Fund (MGF), a $400 million blended finance vehicle designed to scale high-impact distributed energy and climate investments in Sub-Saharan Africa, South East Asia, and Latin America. The Fund’s goal is to address energy poverty and advance an equitable, low-carbon world powered by clean energy.

MGF provides long-term, flexible debt, typically averaging $10 million per investment, to small and medium-sized enterprises (SMEs) across the Global South, bridging a critical financing gap for companies operating in underserved markets. The Fund targets commercially viable models across six key sectors: Commercial and Industrial (C&I) solar, solar home systems, telecom energy services, mini-grids, agri-solar, and emerging technologies such as e-mobility and battery storage.

The Fund’s blended structure layers junior equity and senior debt plus a super-senior tranche designed for institutional investors, complemented by a partial portfolio guarantee from the Swedish International Development Cooperation Agency (SIDA).

To enhance both financial and developmental outcomes, the Fund is supported by a Technical Assistance (TA) Facility that helps portfolio companies strengthen ESG practices, improve gender inclusivity, and build operational capacity.

__Climate and Gender Lens__

Climate and gender impact are embedded at the core of MGF’s mission.

Mirova has positioned MGF as a leading gender-lens investing vehicle. The Fund is officially 2X Challenge-qualified, meeting both the direct criteria (i.e.,entrepreneurship, leadership, consumption, and employment) and the indirect criteria for financial intermediaries. Approximately 50% of MGF’s portfolio is targeted toward 2X-aligned investees, with the remainder supported through the Fund’s TA Facility to achieve gender alignment.

This TA Facility provides hands-on support for investees seeking to implement gender action plans, improve workplace equality, and strengthen gender performance. By helping investees institutionalize gender equity, MGF not only advances inclusion but also drives stronger business results.

Finally, by making flexible, long-term capital available to SMEs, MGF advances climate mitigation outcomes while improving livelihoods.
Since its launch in 2023, the Fund has enabled first-time energy access for approximately 4.6 million people, half of them women, while avoiding 8 million tons of CO₂ emissions and supporting around 60,000 jobs across its portfolio.

__Takeaways from the Design Process__

Like other practitioners developing blended finance instruments, Mirova’s design process for MGF was complex and iterative. Their experience offers valuable lessons for practitioners on a similar journey, many of which are captured in the [case study co-published by Mirova and Convergence](https://www.convergence.finance/resource/structuring-a-blended-fund-lessons-from-mirova-gigaton-fund-in-frontier-and/view).  Reflecting on MGF’s design process, there are at least 2 takeaways for practitioners going through a similar design journey as Mirova.

First, building agility into the vehicle structure while prioritizing simplicity and relevance to market context is crucial for long term success. Within the Convergence’s Blended Finance Accelerator programs, we sometimes find practitioners trying to develop very complicated vehicle structures. The best practices we have seen over time, and shown by Mirova’s case, is that blended structures work best when they are simple enough for relevant stakeholders to understand and also address the requirements of various investor groups. 

In Mirova’s case, the team designed a three layered structure - a simple modification of the basic two layer structure - with super senior debt (targeting private investors such as pension funds, family offices and insurers), senior debt (a mezzanine layer tailored to meet the needs of DFIs), and a catalytic junior layer (to pool capital from development agencies and foundations that play a catalytic role in absorbing initial losses). This was done to simplify the design and to meet the expectations of different stakeholder groups.

Also, Mirova’s initial design included a fixed interest rate based on the market trends in 2021 when the Fund was initially designed. Starting late 2021 through 2022 and 2023, interest rates began to rise. In response to the evolving interest rate environment, MGF explored options of floating interest rates or updating conditions offered to private investors. Since the market at the time was not comfortable with a floating interest rate design, MGF settled on offering higher interest rates to the two senior tranches without altering the fund structure.

Second, where possible, complementing the vehicle structure with innovative elements strengthens the overall vehicle structure and builds interest for the vehicle in the ecosystem. In Mirova’s case, they chose to pursue a combination of innovative financing mechanisms such as a credit rating for the senior most tranche (though it did not materialize as intended for reasons outlined in the [case study](https://www.convergence.finance/resource/structuring-a-blended-fund-lessons-from-mirova-gigaton-fund-in-frontier-and/view)), innovative risk sharing agreements such as a partial portfolio guarantee, and customized technical assistance via their TA Facility. These elements together make the MGF’s structure unique, while improving acceptance of the vehicle among various stakeholders.

The grant from Convergence was instrumental for Mirova to continue scoping and refining the vehicle structure.  In addition to refining fund design, Convergence's support to the MGF also helped them finetune their TA facility design, enabling them to better integrate a gender lens into the Fund’s strategy and marketing. 

__The Way Forward__

The Mirova Gigaton Fund reached its third close in January 2025, with total commitments exceeding $330 million, a substantial share of which came from private investors. MGF is now firmly in its deployment and management phase, focusing on supporting the sustainable growth of its investee companies across Sub-Saharan Africa, South-East Asia, and Latin America.

MGF’s case exemplifies how a blended finance vehicle can be designed to accelerate clean energy transition in frontier and emerging markets. Ultimately, it shows that well-structured catalytic capital can crowd in commercial investment at scale, channeling much-needed financing into high-impact sectors otherwise left underfunded.

As the Fund continues to deploy capital and gender-focused TA support, it offers a blueprint for future climate finance vehicles seeking to combine financial returns, inclusion, and impact.


Designing for Scale: Mirova Gigaton Fund and Lessons in Climate and Gender Finance

Mirova Gigaton Fund 

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

Earlier this month, Convergence hosted its inaugural Global Blended Finance Forum in Washington DC to celebrate its 10 year anniversary.

The Forum brought together over 250 participants from the public, private, and philanthropic sectors, from over 40 different countries. It was hosted at a moment where blended finance hovers at an important inflection point. As ODA diminishes, it is an opportunity for blended finance to be more strategic, efficient, and fit-for-purpose. We saw the Forum as a moment to think about the progress that has been made and to define the next decade.

As such, the Forum covered a range of the most pressing issues in blended finance today, including the reality of diminishing ODA, the importance of local capital mobilization, the emerging role of insurance, the rising interest in guarantee structures, the imperative for standardization, and much more.

Participants were treated to a variety of formats and opportunities to network, including an optional blended finance primer, roundtables focused on specific topics, regional break out groups, in addition to panels and spotlight sessions.

__Below are some takeaways from the Forum:__

1. __A hunger for collaboration and community__: As the consequences of reduced foreign aid budgets begin to ripple through the blended finance market and beyond, a palpable sense of urgency, paired with a strong desire for community, defined the Forum. Attendees were eager to engage openly and substantively with each other. Blended finance is, by nature, a fragmented field, but the Forum made it clear that the practitioners driving these deals are determined to change that. Across three days, we heard from a wide diversity of voices and witnessed vital connections forming across sectors and regions. 

2. __Standardization was the word of the day__: Standardization emerged as a critical enabler for scaling blended finance by improving efficiency, reducing transaction costs, aligning objectives, fostering collaboration, and building investor confidence. Attendees recognized that blended finance must evolve from generating bespoke deals to also delivering standardized, scalable instruments to unlock the vast capital needed for sustainable development. This sentiment was echoed by Matt Kaczmarek, Head of Emerging Market Credit Strategy at BlackRock, during the Forum’s opening keynote, “To amplify impact and scale investment in emerging markets, we must standardize our approaches—building common frameworks, clear objectives, and investor-friendly structures that reduce complexity and enable efficient, large-scale collaboration.” ![Matt Kaczmarek](//images.ctfassets.net/4cgqlwde6qy0/1Ju3PSS5TYQEx7yfYpE9Yv/21a16885b3d57067a596e9d5f3b7ff98/IMG_6016.jpg) Many attendees are actively working on standardization. In a [session](https://youtu.be/cRubTG2SHhA?si=ZR-_Spszbq2zSc2q) on navigating declining ODA, Geneviève Brown, Executive Director of the Innovative Finance at Global Affairs Canada, discussed the G7’s recently launched [Common Principles for Private Capital Mobilization initiative](https://www.canada.ca/en/global-affairs/news/2025/06/secretary-of-state-sarai-concludes-participation-in-the-fourth-international-conference-on-financing-for-development.html), which provides a roadmap for transparency, alignment, and collaboration between public and private actors. She described how they are working with the [SCALED](https://scaledevelopment.org/) initiative to put those principles into action by identifying straightforward investment vehicles with standard terms that are familiar. Chris Clubb, Managing Director at Convergence, also presented Convergence’s efforts to move the field towards [standardization](https://www.convergence.finance/standardization) by identifying 12 Private Investment Mobilization Models as effective and efficient approaches to standardize and scale SDG and climate investment in developing countries. ![Blended Finance 2.0: Standardizing Investment Models for Scale](//images.ctfassets.net/4cgqlwde6qy0/4Eoogy3TFNMGqFUQu0gLkd/3ddde2952441a24c24ed60a015e3f4e4/IMG_6741.jpg) During the [session](https://youtu.be/boLYIA8aJDc?si=cJ-vpwOUiBEzj2Q8) Blended Finance 2.0: Standardizing Investment Models for Scale, panellists discussed the challenges to standardization, on balancing innovation and replication, and the importance of collaboration among donors, development finance institutions, and private investors. Susanna Gable, Deputy Director, Development Policy & Finance at Gates Foundation, made the point that for blended finance to meet its potential, it must standardize, “Standardization acts as a risk reduction tool for both donors and private investors by lowering transaction costs and accelerating deal phases. There is no other way to scale blended finance other than through standardization. It also sends a strong market signal that blended finance is serious, efficient, and impactful, though we must be mindful of its limitations in harder markets.” 
3. __Growing enthusiasm for the insurance sector__: With their deep expertise in risk modelling, product innovation, and capital allocation, insurers are a natural fit for blended transactions, yet they are relatively new entrants to the market. As a result there was a lot of enthusiasm around the potential of the insurance sector. The role of insurers and how best to engage them came up frequently throughout the Forum. At the Forum, Convergence launched, in partnership with the Global Asia Insurance Partnership (GAIP), [a Playbook on the Insurance Sector's Roles in Blended Finance at the Climate-Health Nexus](https://www.convergence.finance/resource/playbook-on-the-insurance-sectors-roles-in-blended-finance-at-the-climate/view). The playbook provides a practical roadmap for the insurance sector to act as risk advisors, capital providers, and enablers of tailored protection within blended finance structures that target climate-health resilience. It also explores how donors, DFIs and MDBs can support insurance participation in blended finance. A number of new initiatives involving the insurance sector were discussed, including the Insurance Development Forum, a coalition of large global insurance companies co-chaired by the World Bank and the United Nations Development Program. Mr. Kaczmarek discussed BlackRock’s partnership with them to develop the [Infrastructure Resilience Development Fund](https://www.insdevforum.org/press-release-insurance-development-forum-announces-first-close-of-infrastructure-resilience-development-fund-for-resilient-infrastructure-projects-in-emerging-and-developing-economies/?utm_source=chatgpt.com), which is focused on resilience and adaptation and provides insurance companies with a diversified emerging market infrastructure credit portfolio to complement their existing investment in developed markets. The Fund officially launched and began deploying capital in October. “Insurers manage $30 trillion in assets with only about 3% on average allocated to emerging markets and almost all of that in public market assets. A small allocation by this massive sector would send hundreds of billions of dollars of new investment to emerging markets,” stated Mr. Kaczmarek. ![Min Hung Cheng](//images.ctfassets.net/4cgqlwde6qy0/1LKJM8GIefI0LGHliyTZmF/c1b9e501e2faa1ddc93818076b082136/IMG_6768.jpg) In a [session](https://youtu.be/ILdb_yfo3PY?si=p_frY0xWVvwq6BKW) focused on insurance that explored the value insurers can bring as risk advisors, insurers, and investors to crowd in private capital, Min Hung Cheng, CEO at GAIP, highlighted the importance of integrating insurance expertise early in project planning and risk assessment, which requires standardized approaches and frameworks that facilitate early collaboration. “The insurance sector can bring a lot of value, but you can only maximize that and optimize that if you bring them in early. Don’t bring them in on page 105 of appendix 5. Bring them in earlier and they can do a lot more,” stated Ms. Cheng. To underscore the critical role insurance plays in making investments viable by managing risk, Ms. Cheng quoted the Prime Minister of Barbados, Mia Mottley, concluding that “What’s uninsurable is not investable. What’s uninsurable is not bankable either.” 
4. __Guarantees emerged as a popular tool__: Throughout the Forum guarantees were highlighted as an increasingly important instrument to mobilize private capital efficiently, especially amid declining ODA budgets and mounting fiscal pressures. ![Christian Brändli](//images.ctfassets.net/4cgqlwde6qy0/2M80rJR4AnSyUc6Rr7w0kW/2880fb13c058163ee747da47d628e413/IMG_6095.jpg) Christian Brändli, Head Private Sector Development at SECO, emphasized how guarantees, especially portfolio guarantees, are among the most effective blended finance tools in terms of mobilizing private sector funds per concessional dollar invested. He provided the example of Guarantco, the guarantee arm of the Private Infrastructure Development Group, which has demonstrated strong leverage by mobilizing $5.7 billion with only about $300 million of paid-in equity. Christian also made the point that the use of guarantees has the potential to enable a gradual reduction of concessionality, “They provide real-world evidence that the perceived risks of investing in emerging markets is often higher than actual risks. And if we apply guarantees repeatedly and systemically, you can track how concessionality levels decrease over time as the markets mature.” In some cases, concessional capital is not needed at all. Lasitha Perera, CEO at Development Guarantee Group, in a later [session](https://youtu.be/C0GnU3YElaY?si=Lp7tYnxmBMNtXR4X) on Financing Climate-Smart Infrastructure, described the establishment of the Green Guarantee Company that operates commercially without concessional capital and helps to mobilize private capital by providing commercially rated (BBB stable) guarantees.![Lasitha Perera](//images.ctfassets.net/4cgqlwde6qy0/4z327pGGcIYPHxDdPiyHza/8b38f16a0eeaeeb6466af1aeff5cd252/IMG_6875.jpg) In the same session, Maheen Rahman, CEO at Infra Zamin Pakistan noted how guarantees serve not only as risk mitigation but also as market signals to stimulate commercial lending in underbanked sectors. As the guarantees cover local currency exposures, they become a popular tool for local private companies as well as local banks to move into new lending markets. 
5. __A palpable optimism__: Finally, the overwhelming sentiment throughout the Forum’s two and half days was optimism. Despite the many challenges facing blended finance and the market's still-tentative growth, attendees expressed confidence in the decade ahead. The past ten years have laid the foundation and built a solid evidence base, crystallizing lessons learned and clarifying what works, what doesn’t, and what works better. Participants left with a shared intent to move decisively from experimentation to standardization, replication, and scale. ![Global Blended Finance Forum](//images.ctfassets.net/4cgqlwde6qy0/1Opz1FZrgRcVhO7h6iSj0v/56a97e3225442d68316c4ac3cee1ed46/IMG_7398.jpg)

Reflections and takeaways from the Global Blended Finance Forum

Global Blended Finance Forum takeaways and reflections

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

*Washington, D.C., November 3, 2025* — Today, Convergence, the global network for blended finance, launches the State of Climate Blended Finance 2025.

The report finds that despite declining from a record high in 2023, the climate blended finance market remained steady in 2024, with the second-highest total in aggregate financing in the past decade, representing $15.5 billion mobilized across 84 deals.

There was a significant growth in private investor appetite in 2024. Institutional investors committed $1.6 billion into climate blended finance in 2024, a massive surge from just $2 million in 2022, while commercial banks contributed $2.4 billion. Local private actors, domiciled in emerging markets, are also playing a growing role in climate blended finance. The share of overall investments from local private actors rose from 17% in 2019-2021 to 29% in 2022-2024. Since 2022, private investors have committed $14.6 billion to climate blended finance transactions, representing 31% of total commitments over the past three years. This makes them the second largest source of capital to climate blended finance, however, these volumes are infinitesimal by private sector standards.

“Despite remaining steady, the market falls far short of the climate financing needs of developing countries, with only incremental growth where exponential growth is needed,” says Andrew Apampa, CFA, Associate Director of Market Insights. “The collision of diminishing foreign aid and the scale of climate financing required, make climate blended finance more critical than ever.”

Mitigation has dominated climate blended finance, accounting for 56% of deals and 64% of total flows from 2019 to 2024. Between 2023 and 2024 there was a sharp increase in private capital flows to mitigation, nearly doubling from $2.1 billion to $4.1 billion. Blended finance for adaptation still makes up the smallest share of the market, accounting for 19% of transactions and 13% of flows between 2019 and 2024. However, adaptation blended finance flows surpassed $2 billion in both 2023 and 2024, increasing from $2.1 billion to $2.4 billion, signaling stronger momentum.

Climate investments are increasingly concentrated in lower middle-income countries, while the share of financing in least developed countries (LDCs) has dropped. Climate blended finance activity in LDCs fell from 23% in 2023 to 5% in 2024, deals in lower-middle-income countries rose to 73% in 2024, from 62% in 2023. This movement to lower-middle income countries is reflected in the regions showing the most growth in blended finance in 2024: East Asia and the Pacific as well as Europe and Central Asia saw transactions increase by 77% ($1.3 billion to $5 billion) and 100% ($2.6 billion to $6.4 billion) from 2023 to 2024, respectively.

Financing to Ukraine makes up a significant portion of flows going into Europe and Central Asia, with nine deals totaling $1.4 billion, and placing Ukraine as the country with the second highest climate blended finance activity in 2024. Most of these deals were arrangements between the European Bank for Reconstruction and Development and Ukrainian banks in an effort to sustain critical infrastructure and essential services as the war persists. This positions blended finance both as a form of crisis financing, as well as a tool to effect operational and environmental sustainability for real economy companies.

“This current report looks at data from 2024 and does not yet reflect the full effects of the decline in official development assistance that we’ve seen in the last year or so,” says Joan Larrea, CEO at Convergence. “We can expect more big waves of change to come and we are going to need to be more efficient and ambitious with how concessional money is applied within blended finance transactions. This report captures some of the groundwork being laid for the next decade of blended finance. Whether the changes ahead produce more urgency around scale and speed-to-market or whether the field weakens under strain will depend on how well we apply the lessons we’ve learned from the last decade.”

Finally, this year’s report assesses the state of climate blended finance in light of the Fourth International Conference on Financing for Development held in Seville earlier this year, and sets out the key challenges and opportunities facing the market in the years ahead.

Analysis in the report draws from Convergence Market Data, the largest and most detailed database of historical blended finance transactions, currently comprising 1,478 blended finance transactions with a total investment of $260 billion.

Read the State of Climate Blended Finance 2025 [here](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view).

__About Convergence__ 
Convergence is the global network for blended finance. Convergence’s Blended Finance Accelerator supports blended finance practitioners with design grants, acceleration support, and market intelligence to scope, structure, and launch new blended finance solutions that unlock commercial investment to accelerate sustainable development in emerging markets.

On top of market acceleration, through its Blended Finance Accelerator, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 160 public, private, and philanthropic investors as well as sponsors of transactions and funds.

__Media Contact__ 
Sijia Yi 
Head of Communications 
Convergence 
sijia.yi@convergence.finance

Convergence, the global network for blended finance,  has launched the State of Climate Blended Finance 2025.

New report finds climate blended finance market holds steady

New Convergence report finds climate blended finance market holds steady, while private investor momentum builds

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

__Toronto, October 29, 2025__ – Today, the [Catalytic Climate Finance Facility (CC Facility)](https://www.ccfacility.org/) announced it has awarded USD 870,000 to its new cohort of grantees. The selected projects include the Southeast Asia Blue Innovation Facility (SEA-Fund), the Regenerative Capital Fund (ReCa), and the FTB Green Credit Facility.

The CC Facility, a partnership between [Climate Policy Initiative](https://www.climatepolicyinitiative.org/) and [Convergence](https://www.convergence.finance/), provides working capital grants of up to USD 500,000 to help scale early-stage financial solutions that mobilize private capital for climate action in developing economies.

The Facility and its team of experts also provide up to 18 months of tailored technical assistance to address barriers and maximize opportunities to increase the investment pipeline.

The three vehicles were selected following a rigorous review process from a pool of more than 500 submissions worldwide. Each vehicle addresses investment barriers in Southeast Asia and Sub-Saharan Africa, supporting projects in maritime decarbonization, climate-resilient agriculture, and the clean energy transition.

“These three vehicles stood out for their rigor, creativity, and strong potential to mobilize private capital for climate impact,” said __Joan Larrea, CEO at Convergence__. “In an era of diminishing foreign aid, blended finance initiatives like the CC Facility are proving indispensable, by fast-tracking climate solutions that not only deliver impact but also attract the capital needed to sustain it.”

With support from three anchor donors – [The Gates Foundation](https://www.gatesfoundation.org/), [Global Affairs Canada](https://international.canada.ca/en/global-affairs), and Australia's [Department of Foreign Affairs and Trade](https://www.dfat.gov.au/) – the CC Facility targets a main obstacle to scaling blended climate finance: the challenging acceleration stage, when promising financial vehicles try to attract investment across diverse markets.

__SELECTED VEHICLES:__ 
__The Southeast Asia Blue Innovation Facility (SEA-Fund)__ will be structured as a USD 450 million sustainability bond or asset-backed security to finance infrastructure projects with a focus on maritime decarbonization, alongside a USD 50 million venture capital fund dedicated to early-stage ocean and climate-tech startups.

__The Regenerative Capital Fund (ReCa)__ is a USD 400 million blended equity vehicle that mobilizes institutional investment to scale regenerative agriculture and nature-based solutions across Sub-Saharan Africa through long-term, climate-aligned, and inclusive agrifood investments.

__FTB Green Credit Facility__ is a USD 160 million program offering affordable, long-term loans and guarantees to help Cambodian banks and businesses invest in green projects.

__QUOTES__ 
“We applied to the CC Facility to accelerate the structuring and launch of the SEA Fund—a blended finance vehicle addressing the maritime decarbonization and climate adaptation gap in Southeast Asia—by leveraging the Facility’s catalytic capital and technical support. We aim to gain catalytic validation, structuring expertise to mobilize concessional and institutional investors, shorten time-to-market, and unlock the first wave of investable projects across the region,” said __Vicky Lay, Partner & Head of Impact of Artesian__.

“We applied to the CC Facility to strengthen the ReCa Fund’s impact frameworks, enhance our investor readiness, and build confidence in a scalable blended finance model for regenerative agriculture and climate adaptation across Africa. We hope to gain targeted technical assistance to refine our impact and gender KPIs, and catalytic grant support to accelerate due diligence, capital raising, and the successful launch of the ReCa Platform,” said __Duncan Vink, Joint Managing Director of Signature Agri Investments__.

“Our participation in the CC Facility marks a strategic commitment to pioneering the future of green finance in Cambodia. We are honored to collaborate in developing robust financial products and governance frameworks designed to mobilize private capital at scale. Through this Facility’s unique combination of grant funding, expert technical assistance, and a collaborative network, we will launch investable blended-finance models that directly address both climate mitigation and adaptation and improve critical services for Cambodia,” said __Dith Sochal, CEO of Foreign Trade Bank of Cambodia__.

__ABOUT THE CATALYTIC CLIMATE FINANCE FACILITY__ 
The Catalytic Climate Finance Facility (CC Facility) is a solution to scale climate finance by filling a market gap in mobilizing private capital. The CC Facility provides a range of services to market-ready blended finance vehicles in developing economies to help them expand their reach. Through grant funding, technical support, and a learning hub, the CC Facility accelerates the implementation of high-impact financial structures while providing resources to the broader ecosystem on how to best catalyze climate finance. The initiative is a partnership between Climate Policy Initiative (CPI) and Convergence.

__MEDIA CONTACTS__ 

__Sijia Yi__ 

Head of Communications 

Convergence Blended Finance 

sijia.yi@convergence.finance 

 

__Annie Woscoboinik__ 

Communications Associate 

Climate Policy Initiative 

annie.woscoboinik@cpiglobal.org

CC Facility awards nearly USD 1 million in grants for climate finance solutions in Asia and Africa

CC Facility new cohort announced

*Toronto, 27 October, 2025* — Today, Convergence Blended Finance and the Australian Department of Foreign Affairs and Trade (DFAT) launch the first call for proposals for the [Indo-Pacific NGO Blended Finance Accelerator](https://www.convergence.finance/accelerator/dfatngo). This five-year, AUD 10 million initiative will be managed by Convergence. The Accelerator will support non-governmental organizations (NGOs) to scope, develop, and implement high-impact blended finance solutions to advance climate action and gender equality in the Indo-Pacific region.

The Indo-Pacific region, while having experienced rapid economic growth, now faces mounting development challenges. It accounts for over half of global greenhouse gas emissions and includes six of the ten most climate-affected countries. Women and girls in the region are disproportionately impacted by poverty and climate change, underscoring the need for inclusive, gender-responsive solutions.

The role of NGOs in advancing climate and gender outcomes, especially in the context of blended finance, is becoming increasingly important. Convergence’s Market Data found that around 17% of all blended finance transactions have at least one NGO participating in developing and implementing the transaction. The social, environmental and impact expertise NGOs bring to the table is critical for the success of a blended finance transaction. With boots on the ground, NGOs have a realistic picture of what the target beneficiaries need. NGOs understand how to measure impact effectively, making their role vital from design through to implementation and evaluation of a blended transaction. 

We have seen a growing interest from NGOs to design and participate in blended finance solutions in the Indo-Pacific region. However, their participation remains limited due to lack of resources and support in designing and scaling blended finance transactions.

The Accelerator will help bridge that gap by equipping NGOs with the tools, knowledge, and partnerships they need to strengthen their role in designing, piloting, and scaling blended finance transactions as impact managers, technical assistance providers and, where suitable, fund managers. 

The Accelerator consists of two core components:
- __Catalytic Design Grants__: USD 200,000 to 550,000 to support NGOs from early-stage scoping and proof-of-concept through to the piloting and scale up of their blended finance solutions.
- __Acceleration Support__: NGOs supported by the initiative will also receive tailored capacity building, expert advisory services, peer learning opportunities, and facilitated access to funders and networks to bolster their potential for success in designing and scaling blended finance solutions.

 
The Accelerator will help NGOs use blended finance to overcome the structural barriers they face to expand their impact, especially in underserved markets like the Pacific Islands.

“In a time where many nations are increasingly looking inward, we are heartened that the Australian Government is undertaking this ambitious partnership with Convergence to support sustainable development in the Indo-Pacific region,” says Joan Larrea, CEO at Convergence. “This is an all hands-on deck moment and we need the sectoral and place-based knowledge of NGOs to create high-impact, solid investment opportunities.” 

“In the Indo-Pacific region, blended finance increasingly drives capital into business models scaling impact at the grassroots. NGOs are at the tip of the spear, working directly with local communities to address pressing challenges. By equipping NGOs to design and launch blended finance structures, we unlock financial innovations and private sector partnerships to accelerate sustainable development in the region,” Leah Pedersen, Senior Director, Blended Finance Accelerator at Convergence. 

Expressions of interest for the accelerator are now open. To apply, you can follow the instructions on the Indo-Pacific NGO Blended Finance Accelerator website and submit your applications by __November 18, 2025__.

*__Join Convergence and DFAT for an info session on the November 13, 2025, 2pm AEDT / 11am SGT. [Register now.](https://www.convergence.finance/calendar/4Td69Id1h1r31bRZsAFTuq/view)__*

__About Convergence__ 
Convergence is the global network for blended finance. Convergence’s Blended Finance Accelerator supports blended finance practitioners with design grants, acceleration support, and market intelligence to scope, structure, and launch new blended finance solutions that unlock commercial investment to accelerate sustainable development in emerging markets.

On top of market acceleration, through its Blended Finance Accelerator, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 160 public, private, and philanthropic investors as well as sponsors of transactions and funds.

__About DFAT Australia__ 
The Department of Foreign Affairs and Trade (DFAT) promotes and protects Australia’s international interests to support our security and prosperity.

Australia's [international development policy](https://www.dfat.gov.au/publications/development/australias-international-development-policy) sets the long-term direction for Australia's development program. It guides how Australia works with partners to advance a peaceful, stable, and prosperous future for our region – ensuring DFAT’s international development program is responsive to today's complex and interconnected challenges.

Convergence and the Australian Government Launch Call for Proposals for AUD 10 Million Accelerator to boost NGO participation in Blended Finance across the Indo-Pacific 