CCFF webinar email header

__July 30, 2024, from 10:00 AM EDT__

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The [Catalytic Climate Finance Facility](https://www.ccfacility.org/) will host a webinar on July 30th to equip attendees with the knowledge and tools to bridge the gap between gender, energy, and climate blended finance. This comprehensive webinar will achieve this by:

- Providing a landscape view of the intersections between gender, energy, and climate blended finance.
- Offering practicable and candid guidance for incorporating gender equality considerations into climate blended finance instruments, specifically targeting the gender & energy nexus.
- Showcasing and amplifying successful examples of gender integration within climate blended finance vehicles that target the energy sector. 
 

__Format__ 
This 90-minute webinar includes a presentation summarizing key findings from the Convergence and [Climate Policy Initiative](https://www.climatepolicyinitiative.org/) report on the Gender and energy nexus within climate blended finance and practical advice on integrating gender considerations into climate blended finance instruments. Following this, a panel discussion will feature investors discussing their gender assessment approaches and monitoring, with examples from two case studies. The session will conclude with a 30-minute Q&A segment. 

__Agenda__ 
- 10:00 – Opening Remarks from Arjan de Haan, Senior Program Specialist, the International Development Research Centre (IDRC)

- 10:05 – Report Findings: Gender and Energy Nexus within Climate Blended Finance
- 10:20 – Practical Advice on Integrating Gender Considerations into Climate Blended Finance
- 10:30 – Perspectives and Lessons from Investors & Practitioners on Gender in Climate Blended Finance

__Moderator__: Demetrio Innocenti, Climate Lead, 2X Global

__Panelists__: 
Anne-Marie Lévesque, Director, Impact Strategies & Thought Leadership, Development Finance Institute Canada (FinDev Canada)

Jeannette Gurung, PhD, Founder & Executive Director, Women Organizing for Change in Agriculture and Natural Resources Management (WOCAN)

Lasitha Perera, CEO, Green Guarantee Company (GGC)

Maud Savary-Mornet Founder & CEO, Beyond Finance Consulting

- 11:00 – Q&A

Webinar: Gender and Energy Nexus within Climate Blended Finance

Join our FREE webinar on July 30th to learn about the tools to bridge the gap between gender, energy, and climate blended finance.

Gender & Energy Nexus within Climate Blended Finance Webinar

Deal Connect

Join us for an informative webinar that will connect you to relevant 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 deals database. This is a great opportunity to explore new and unique transactions and learn from developments in the broader blended finance ecosystem.  

Whether you're a seasoned investor or just starting, this webinar is tailored to everyone interested in discovering promising new ventures in emerging markets.

Mark your calendar for __July 24, 2024, from 9:00AM to 9:45AM EDT__, as we present two compelling deals from our live deals database:

- __Smallholder Agroforestry Finance (SAF), by Rabobank__, is a blended finance facility that provides funding to smallholder farmers to support their transition to agroforestry, enabling access to carbon markets, additional income streams, and innovative funding sources.

- __Girls First Finance (GFF), by Girls First Finance Loans LLC__, is a company seeking to empower and protect vulnerable girls in Kenya and Sub-Saharan Africa through access to finance, education, community, and opportunity. Their strategy is multifaceted, centred around a mobile app providing access to small loans and professional empowerment tools for career advancement and ensuring holistic safeguarding.

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

Deal Connect: July 2024

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

gacwebinar mar23 eventbrite

__Wednesday, July 17, 2024, from 8:30AM - 9:30AM EDT__

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Convergence's Design Funding program supports the design and launch of new blended finance vehicles that aim to catalyze private investment in developing countries and towards the Sustainable Development Goals.

We invite you to join us virtually for an information session on the [Gender-Responsive Climate Finance Design Funding Window](https://www.convergence.finance/design-funding/open-window/gender-responsive-climate-finance-window). The Window awards feasibility study and proof-of-concept grants for the design and launch of innovative blended finance vehicles that mobilize private capital at scale towards solutions targeting the nexus of climate change and gender equality in emerging markets globally.

In this funding cycle, we will have a strong preference for climate adaptation vehicles that are at the proof-of-concept stage.

Register for the webinar to:
- Learn about Convergence’s Design Funding Program and the application process for the Gender-Responsive Climate Finance design funding window
- Understand the importance of climate adaptation and the role blended finance can play in addressing it
- Hear from a past grantee about their experience designing a gender inclusive blended finance vehicle targeting climate adaptation
- Gain insight into how to apply, grant eligibility, and evaluation criteria
- Get your Design Funding questions answered and more.
 

Applications for the Gender-Responsive Climate Finance Design Funding Window are accepted on a rolling basis. The next concept notes submission deadline is __August 30, 2024__. Learn more and apply [here](https://www.convergence.finance/design-funding/open-window/gender-responsive-climate-finance-window).

Gender-Responsive Climate Finance Window: Info Session | July 2024

https://www.youtube.com/watch?v=WY8k23Pxj6I

Convergence's Design Funding program supports the design and launch of new blended finance vehicles that aim to catalyze private investment in developing countries and towards the Sustainable Development Goals.

Watch this information session on the [Gender-Responsive Climate Finance Design Funding Window](https://www.convergence.finance/design-funding/open-window/gender-responsive-climate-finance-window). The Window awards feasibility study and proof-of-concept grants for the design and launch of innovative blended finance vehicles that mobilize private capital at scale towards solutions targeting the nexus of climate change and gender equality in emerging markets globally.

In this funding cycle, we will have a strong preference for climate adaptation vehicles that are at the proof-of-concept stage.

Watche the webinar to:
- Learn about Convergence’s Design Funding Program and the application process for the Gender-Responsive Climate Finance design funding window
- Understand the importance of climate adaptation and the role blended finance can play in addressing it
- Hear from a past grantee about their experience designing a gender inclusive blended finance vehicle targeting climate adaptation
- Gain insight into how to apply, grant eligibility, and evaluation criteria
- Get your Design Funding questions answered and more.
 

Applications for the Gender-Responsive Climate Finance Design Funding Window are accepted on a rolling basis. The next concept notes submission deadline is __August 30, 2024__. Learn more and apply [here](https://www.convergence.finance/design-funding/open-window/gender-responsive-climate-finance-window).

Learn about the Gender-Responsive Climate Finance Design Funding Window

Learn about the Gender-Responsive Climate Finance Window

lac training social v3

__Member Training: Blended Finance for Agriculture and Forestry in Latin America and the Caribbean, June 25, 2024, 9:00AM - 10:00AM EDT__

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The Latin America and the Caribbean (LAC) region is one of the most biodiverse on the planet and plays a critical role in global agriculture. Agriculture and forestry are key sectors for the region, economically, socially, and environmentally. Blended finance can play a key role in helping catalyze financing toward LAC’s agriculture and forestry sectors. 

This training will explore trends from our [Blended Finance in Latin America and the Caribbean: Agriculture and Forestry Data Brief](https://www.convergence.finance/resource/blended-finance-in-latin-america-and-the-caribbean-agriculture-and-forestry/view) and feature innovative blended finance structures from leading practitioners and investors at this nexus. 

Join us as we discuss the trends, opportunities, and challenges of blended finance for agriculture and forestry in LAC.

Featured speakers:
- Leslie Durschinger, Founder, CEO, CIO, Terra Global Capital
- Federico Sinisterra Tenorio, Senior Manager, Investment Management Debt, Colombia, Finance in Motion
- Pajani Singah, Co-Founder/ Investment Director, Amazonia Impact Ventures
- Steven Ripley, Director, Investor Engagement, Sustainable Investment Management
- Marcelo Cwerner, Head of Impact Finance, Conexsus
 

*Registration is complimentary for members, please register using the code shared via email. Non-members can register for a fee of $75.*

Member Training: Blended Finance for Agriculture and Forestry in Latin America and the Caribbean

The Latin America and the Caribbean (LAC) region is one of the most biodiverse on the planet and plays a critical role in global agriculture. Agriculture and forestry are key sectors for the region, economically, socially, and environmentally. Blended finance can play a key role in helping catalyze financing toward LAC’s agriculture and forestry sectors. 

This training explored trends from our [Blended Finance in Latin America and the Caribbean: Agriculture and Forestry Data Brief](https://www.convergence.finance/resource/blended-finance-in-latin-america-and-the-caribbean-agriculture-and-forestry/view) and featured innovative blended finance structures from leading practitioners and investors at this nexus. 

Featured speakers:
- Leslie Durschinger, Founder, CEO, CIO, Terra Global Capital
- Federico Sinisterra Tenorio, Senior Manager, Investment Management Debt, Colombia, Finance in Motion
- Pajani Singah, Co-Founder/ Investment Director, Amazonia Impact Ventures
- Steven Ripley, Director, Investor Engagement, Sustainable Investment Management
- Marcelo Cwerner, Head of Impact Finance, Conexsus

Join us as we explore blended finance for agriculture and forestry in Latin America and the Caribbean.

Blended Finance in Latin America and the Caribbean

itd lendable speakers v4

__Inside the Deal: MSME Fintech Credit Fund, June 18, 2024, 9:00AM - 10:00AM EDT__

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

In our next webinar, we will feature Lendable’s MSME Fintech Credit Fund. This is a private debt fund which provides on- and off-balance sheet debt to fintechs that support micro, small and medium enterprises (MSMEs) and the digital business ecosystem across Africa and Southeast Asia. 

During this hour-long webinar, the Lendable team will provide an overview of the fund's structure and their fundraising journey. We will also conduct in-depth interviews with key stakeholders involved in the transaction, uncovering invaluable lessons learned along the way. The webinar will conclude with an open Q&A session.

*This webinar is open to Convergence members only.*

Inside the Deal: MSME Fintech Credit Fund

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

In this webinar, we featured Lendable’s MSME Fintech Credit Fund. This is a private debt fund which provides on- and off-balance sheet debt to fintechs that support micro, small and medium enterprises (MSMEs) and the digital business ecosystem across Africa and Southeast Asia. 

During this hour-long webinar, the Lendable team provided an overview of the fund's structure and their fundraising journey. We also conducted in-depth interviews with key stakeholders involved in the transaction, uncovering invaluable lessons learned along the way. The session concluded with an open Q&A session.

Join us to learn about Lendable’s MSME Fintech Credit Fund.

Join us for an informative webinar that will connect you to relevant 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 deals database. This is a great opportunity to explore new and unique transactions and learn from developments in the broader blended finance ecosystem.  

Whether you're a seasoned investor or just starting, this webinar is tailored to everyone interested in discovering promising new ventures in emerging markets.

Mark your calendar for __May 28, 2024, from 9:00am to 9:45am EDT__, as we present two compelling deals from our live deals database:

- __SANAD Equity Sub Fund III (SANAD ESF III), by Finance in Motion__, integrates financial inclusion, gender empowerment, and tech innovation for both financial returns and social impact in the Middle East and North Africa (MENA) and Sub-Saharan Africa (SSA) regions. The investment strategy of ESF I & II will be continued with more focus on innovation and gender equality. The Fund targets investments in early stage and growth companies in the MENA and SSA regions.

- __Placemakers Mlolongo Affordable Housing, by Placemakers__, seeks to develop 1,148 units of affordable housing in Nairobi, Kenya, catering to low and middle-income households. With secured land and approvals in place, the project is constructing low-rise apartments ranging from bedsitters to 3-bedroom units, all built to Edge Green Certification standards. The rent-to-own model offers families a clear path to ownership, supported by a purchase agreement from a respected Kenyan Property Fund.

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

Deal Connect: May 2024

sids webinar caribbean social v5

__Tuesday, May 14, 2024, 11:00am-12:00pm EDT__

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Small Island Developing States (SIDS) face unique social, economic, and environmental vulnerabilities, and must rapidly accelerate their transition to sustainable economies. Many SIDS are exploring innovative financing mechanisms, including blended finance, for this transition. Blended finance will be an essential tool in supporting the regional blue economy transition, scaling investment opportunities, and financing nature-based solutions. 

This virtual panel discussion will explore the trends, opportunities, and challenges for blended finance in the Caribbean, and discuss successful examples of blended finance structures and instruments deployed to-date. The session will conclude with an open Q&A. 

Featured speakers:
- __Eduardo Carrera__, CEO, Platform for Social Impact
- __Shenique Albury-Smith__, Deputy Director, Caribbean Division, The Nature Conservancy
- __Kiesha Farnum__, Director, Public Sector Projects, Caribbean Climate-Smart Accelerator
- __Dana Nau François__, Program Officer, Haïti, W.K. Kellogg Foundation


Blended Finance for Small Island Developing States (SIDS): Caribbean

https://www.youtube.com/watch?v=Fz2ta302fbI

Small Island Developing States (SIDS) face unique social, economic, and environmental vulnerabilities, and must rapidly accelerate their transition to sustainable economies. Many SIDS are exploring innovative financing mechanisms, including blended finance, for this transition. Blended finance will be an essential tool in supporting the regional blue economy transition, scaling investment opportunities, and financing nature-based solutions. 

This virtual panel discussion explored the trends, opportunities, and challenges for blended finance in the Caribbean, and discuss successful examples of blended finance structures and instruments deployed to-date. The session will concluded with an open Q&A.

Featured speakers:
- __Eduardo Carrera__, CEO, Platform for Social Impact
- __Shenique Albury-Smith__, Deputy Director, Caribbean Division, The Nature Conservancy
- __Kiesha Farnum__, Director, Public Sector Projects, Caribbean Climate-Smart Accelerator
- __Dana Nau François__, Program Officer, Haïti, W.K. Kellogg Foundation


Join us for for an update on Blended Finance in the Caribbean.

Blended Finance for SIDS: Caribbean

africatraining may24 social v3

__Member Training: Innovative Blended Capital Structures within African Financial Institutions, May 9, 2024, 4:00pm EAT__

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African commercial and development banks have adopted innovative blended structures at the corporate/balance sheet level that have mobilized non-traditional pools of capital to increase their ability to support various thematics including climate, small and medium-sized enterprises, and gender. Examples include Trade and Development Bank and African Guarantee Fund's tiered or varied capital structures. 

Join Convergence for a webinar exploring the nuances of how these organizations have implemented these innovative blended structures from a financial structuring perspective, and the opportunities and challenges they've encountered. The session will begin with a brief overview from each organization followed by panel discussion to delve into the details.

Featured speakers:
- __Mary Kamari__, Executive Director, Trade and Development Fund & Group Executive Corporate Affairs and Investor Relations at Trade and Development Bank Group
- __Nishdeep Sethi__, Group Director of Structured Finance at African Guarantee Fund

*Registration is complimentary for members, please register using the code shared via email. Non-members can register for a fee of USD 75.*

Member Training: Innovative Blended Capital Structures within African Financial Institutions

African commercial and development banks have adopted innovative blended structures at the corporate/balance sheet level that have mobilized non-traditional pools of capital to increase their ability to support various thematics including climate, small and medium-sized enterprises, and gender. Examples include Trade and Development Bank and African Guarantee Fund's tiered or varied capital structures. 

This webinar explored the nuances of how these organizations have implemented these innovative blended structures from a financial structuring perspective, and the opportunities and challenges they've encountered. The session began with a brief overview from each organization followed by panel discussion to delve into the details.

Featured speakers:
- __Mary Kamari__, Executive Director, Trade and Development Fund & Group Executive Corporate Affairs and Investor Relations at Trade and Development Bank Group
- __Nishdeep Sethi__, Group Director of Structured Finance at African Guarantee Fund

Join us for a Spotlight on Innovative Blended Capital Structures within African Financial Institutions

Innovative Blended Capital Structures in Africa

dc training eb

__Thursday May 2, 2024, 10:00am - 5:00pm EDT, Washington D.C.__

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This training will bring together blended finance practitioners in the Washington D.C. area for an inspiring, interactive, and practice-driven day of learning and knowledge sharing. As an intermediate-level programme, the session will combine insights from Convergence experts, notable speakers from major organizations, and technical experts in the field. This training is an opportunity for Convergence members and non-members to gather in-person to share insights and experiences and tackle difficult questions around innovative approaches to mobilize more private capital for the United Nations Sustainable Development Goals. More speaker details to follow.

This training is complimentary for members (one seat for Standard Membership, two seats for Market Builder Membership), USD 500 for additional member seats, and USD 750 for non-members. Please contact your relationship manager for more details or questions on your membership type.

Register by April 19th to reserve your seat.

__Session Agenda__

10:00am: Welcome & Introduction
- Joan Larrea, CEO, Convergence

10:15am: State of Blended Finance 2024: Deeper Insights
- Ayesha Bery, Manager, Convergence; Andrew Apampa, Manager, Convergence
- Convergence to present thematic insights and recommendations from the newly-released report.

10:45am: Panel Discussion: Balancing Scalability and Innovation: A look at Large Scale Transactions
- Moderator: Joan Larrea, CEO, Convergence
- Esteban Brenes, Senior Director Conservation Finance, WWF; Dia Martin, Managing Director, DFC; Stephanie von Friedeburg, Managing Director, Citi

11:45am: Group Exercise: Key Themes in Blended Finance
- Facilitator: Joan Larrea, CEO, Convergence
- Participants will discuss their responses to pre-work activities provided by Convergence on topics relating to their experience in blended finance transactions. 

12:45pm: Networking Lunch

1:30pm: Anatomy of a Blended Finance Transaction: The Central Asia Fund
- Geoffrey Chalmers, Senior Vice President, ACDI/VOCA

2:10pm: Expert Presentation: The Financials of Carbon, Biodiversity and Other Credits and Their Use in Blended Finance

2:40pm: Networking Coffee/Tea Break

3:00pm: Group Exercise: Analyzing a Blended Finance Transaction
- Facilitator: Leah Pedersen, Senior Director, Convergence
- Participants will review a specific blended finance transaction in detail and work together in small teams to analyze the feasibility of the structure and determine key opportunities for innovation and/or challenges to its success.

4:00pm: Blended Finance Marketplace
- Girls First Finance: Ryan Burgess, Managing Principal, Whole Child Advisors
- Azure Source Capital: John Simon, Managing Director, Total Impact Capital

5:00pm: End

In-Person Convergence Training for Blended Finance Practitioners

Join us as we bring together blended finance practitioners in the Washington D.C. area for an inspiring, interactive, and practice-driven day of learning and knowledge sharing.

Blended Finance Training in Washington D.C.

dc networking social

__Thursday, May 2, 2024, 8:30am - 9:30am EDT, Washington D.C.__

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Convergence invites you to a networking breakfast with members and partners in Washington D.C. Come meet with impact investors, institutional investors, donors, development banks, and sponsors of blended finance deals amongst other stakeholders. This event will be an opportunity to connect with like minded individuals/institutions engaged in blended finance, make new contacts, exchange ideas, and more. 

Additionally, we will share key findings from the 2024 State of Blended Finance Report and be available to answer questions following the presentation.

Member Networking Breakfast in Washington D.C.

Join us for a member networking breakfast in Washington D.C.

SOBF newsletter

Join us virtually for the launch of the 8th edition of our flagship State of Blended Finance report on __Tuesday, April 30 at 9:00am EDT__, where we will guide through the report’s data, trends, insights, and recommendations.

This year, for the first time, we will release two State of Blended Finance reports. This first report will cover the overall blended finance market and the second, to be released in Fall 2024, will focus on climate.

Explore last year's report [here](https://www.convergence.finance/resource/state-of-blended-finance-2023/view).

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__AGENDA__

9:00am - Welcome Remarks, __Joan M. Larrea__, CEO, Convergence

9:05am - Key Findings: The State of Blended Finance 2024
- __Nick Zelenczuk__, Manager, Convergence
- __Andrew Apampa__, Manager, Convergence
- __Ayesha Bery__, Manager, Convergence

9:25am - Q&A, Content Team, Convergence

9:35am - Panel Discussion: The Role of Regulators and Central Banks in Blended Finance

Moderated by __Joan M. Larrea__, CEO, Convergence, featuring:
- __Babak Abbaszadeh__, President & CEO, Toronto Centre
- __Isabelle Tiems__, Sustainable Finance Expert, Network for Greening the Financial System (NGFS)
- __Michael Ryland__, Director, Centre for Social Finance Law
- __Ben Weisman__, Executive Director, Capital Mobilization at Glasgow Financial Alliance for Net Zero (GFANZ)

10:05am - Q&A with Panelists

10:25am - Closing Remarks, __Joan M. Larrea__, CEO, Convergence

2024 State of Blended Finance Virtual Launch

https://www.youtube.com/watch?v=CWJrwylXCQY

Watch the replay of our virtual launch of the 8th edition of our flagship State of Blended Finance report guiding through the report’s data, trends, insights, and recommendations.

This year, for the first time, we will release two State of Blended Finance reports. This first report covers the overall blended finance market and the second, to be released in Fall 2024, will focus on climate.

Explore this year's report [here](https://www.convergence.finance/resource/state-of-blended-finance-2024/view).

Convergence is launching the 8th edition of the State of Blended Finance Report on Tuesday, April 30 at 9:00 am EDT. The State of Blended Finance is Convergence’s annual report on blended finance trends, opportunities, and challenges. This year, for the first time, we will release two State of Blended Finance reports.

2024 State of Blended Finance Launch

sids webinar oceania social v2

__Tuesday, April 23, 2024, 10:00pm-11:00pm EDT__.

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Small Island Developing States (SIDS) face unique social, economic, and environmental vulnerabilities, and must rapidly accelerate their transition to sustainable economies. Many SIDS are exploring innovative financing mechanisms, including blended finance, for this transition. Blended finance will be an essential tool in supporting the regional blue economy transition, scaling investment opportunities, and financing nature-based solutions. 

This virtual panel discussion will explore the trends, opportunities, and challenges for blended finance in the Oceania region, and discuss successful examples of blended finance structures and instruments deployed to-date. The session will conclude with an open Q&A. 

Featured panelists:
- Marko van Waveren Hogervorst, PFAN Programme Manager, UNIDO
- Andy Isbister, A/g Director, Blended Finance and Investor Engagement Unit, Australian Department of Foreign Affairs and Trade
- Paul Makumbe, Regional Director, Pacific, Camco

Blended Finance for Small Island Developing States (SIDS): Oceania

https://www.youtube.com/watch?v=4pcRfXFNqgY

Small Island Developing States (SIDS) face unique social, economic, and environmental vulnerabilities, and must rapidly accelerate their transition to sustainable economies. Many SIDS are exploring innovative financing mechanisms, including blended finance, for this transition. Blended finance will be an essential tool in supporting the regional blue economy transition, scaling investment opportunities, and financing nature-based solutions. 

This webinar explored the trends, opportunities, and challenges for blended finance in the Oceania region, and discussed successful examples of blended finance structures and instruments deployed to-date. The session concluded with an open Q&A. 

Featured panelists:
- __Marko van Waveren Hogervorst__, PFAN Programme Manager, UNIDO
- __Andy Isbister__, A/g Director, Blended Finance and Investor Engagement Unit, Australian Department of Foreign Affairs and Trade
- __Paul Makumbe__, Regional Director, Pacific, Camco

Join us for for an update on Blended Finance in the Oceania region.

Blended Finance for SIDS: Oceania

*Toronto, 5 July, 2024* — Convergence awarded a proof-of-concept grant to climate and impact fund manager, [Camco](http://camco.fm/), to design the Transforming Island Development Through Electrification and Sustainability (TIDES) Fund. The fund, envisioned as a USD 100 million blended finance structure, is designed to support the development of renewable energy projects across the Pacific Islands, promoting sustainable development and gender equity. This grant is awarded through Convergence’s [Gender-Responsive Climate Finance Design Funding Window](https://www.convergence.finance/design-funding/open-window/gender-responsive-climate-finance-window), funded by [Global Affairs Canada](https://climate-change.canada.ca/finance/details.aspx?id=2641&GoCTemplateCulture=en-CA).

Due to their geographic isolation and reliance on imported fuels, the Pacific Islands are uniquely vulnerable to energy security challenges and climate change. The TIDES Fund aims to tackle these issues by financing renewable energy projects in the region, focusing on six target islands: Cook Islands, Fiji, Samoa, Solomon Islands, Tonga, and Vanuatu. The innovative blended finance fund aims to catalyze private capital at scale to support a portfolio of commercial and industrial, utility-scale, and off-grid projects.

Convergence previously provided Camco with a feasibility stage grant to identify the initial pipeline, engage with potential investors, and develop the initial legal and financial structure of the fund. Camco has successfully moved past the feasibility stage and will use this new grant to prepare for the launch of this blended debt and equity fund. Camco will also provide technical assistance and capacity building support to local development partners and stakeholders through their Market Development Facility.

The TIDES Fund has integrated gender equity into the core of its investment strategy and a central goal of the fund is to empower local communities, particularly women. Through a comprehensive gender action plan that ensures substantial participation of women throughout the investment process, the fund aims to enhance women's livelihoods by increasing access to electricity, clean energy solutions, and economic opportunities, thereby driving transformative change at the community level.

“We are hugely grateful to Convergence for awarding us this latest grant, which will enable us to reach financial close and launch TIDES,” said Paul Makumbe, Regional Director - Pacific, Camco, “TIDES represents a significant step towards addressing energy security and climate resilience in the Pacific Islands. By integrating gender equity into our investment strategy, we aim not only to provide sustainable energy solutions but also to empower women and girls, fostering economic opportunities and community resilience. Our commitment is to ensure that renewable energy projects benefit all members of the community, creating a lasting positive impact.” 

The TIDES Fund will leverage Camco’s significant experience in fund management and its existing partnerships with local developers to efficiently originate and manage multiple projects. The fund aims to support 83 megawatts of renewable energy generation capacity in the Pacific, providing first-time energy access to over 50,000 people, including 35,000 women and girls.

“The TIDES Fund, by pooling multiple small opportunities, will attract investment at scale into energy security and women empowerment in the Pacific Islands,” says Convergence CEO, Joan Larrea. “We are excited to continue our support of Camco’s work as they advance the region’s clean energy transition and build regional resilience.”

__About Camco Management Limited__ 
Camco is a specialist climate and impact fund manager, leading the transition to a prosperous net zero future in emerging markets. The company is an Accredited Entity of the Green Climate Fund and is authorized and regulated by the UK Financial Conduct Authority. Camco has offices in Auckland, Helsinki, Johannesburg, London, and Nairobi. Visit [camco.fm](http://camco.fm/) to learn more.

__About Convergence’s Design Funding Program__ 
Convergence’s Design Funding program operates as a market acceleration tool providing early-stage capital to support blended finance solutions in frontier markets and nascent sectors to accelerate the number of investible transactions in market targeting SDGs. The Gender-Responsive Climate Finance Window, funded by the Government of Canada, provides grant funding for the design and launch of innovative blended finance solutions focused on the intersection of climate change and gender equality in emerging markets globally. Visit Convergence’s [Design Funding page](https://www.convergence.finance/design-funding) for information on submission deadlines as well as other open windows.

__About Convergence__ 
Convergence is the global network for blended finance. We exist to increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals and Paris Agreement.
Our members include private investors looking to diversify their portfolios, businesses seeking capital, as well as public agencies and philanthropic foundations looking to make their funds go further. 

Learn more about Convergence: [www.convergence.finance](http://www.convergence.finance/)

__Media Contact__ 
Karolyn Xie 
Head of Communications (interim) 
Convergence 
karolyn.xie@convergence.finance

[Subscribe](http://eepurl.com/gg_hjf) to receive our news

Convergence awarded a proof-of-concept grant to climate and impact fund manager, Camco, to design the Transforming Island Development Through Electrification and Sustainability (TIDES) Fund.

Convergence supports clean energy and gender equity

Convergence awards grant to support clean energy transition and gender equity in the Pacific Islands

*Toronto, 5 July, 2024* — Convergence awarded a proof-of-concept grant to [Clarmondial AG](https://www.clarmondial.com/) for the Biosphere Integrity Fund, a blended finance structure, which will finance the transition of emerging and developing market agricultural supply chains and sourcing landscapes to achieve targets on environment, local livelihoods, business resilience, and women's economic empowerment. Priority impact topics are biodiversity and climate action (mitigation, adaptation, and resilience, including water and soil health). Clarmondial is a woman-led business and will apply a gender lens to investments by targeting over 50% women beneficiaries through employment on the farm as well as through access to products and training.

The grant was awarded under the [Gender-Responsive Climate Finance Design Funding Window](https://www.convergence.finance/design-funding/open-window/gender-responsive-climate-finance-window), funded by [Global Affairs Canada](https://climate-change.canada.ca/finance/details.aspx?id=2641&GoCTemplateCulture=en-CA). 

Ensuring supply chain resilience in the face of climate change is increasingly urgent, particularly in light of corporate climate and nature targets and regulations. Through the [Food Securities Fund](https://www.convergence.finance/news/64ZjxX5As00OgOwomQks88/view), an existing impact fund, Clarmondial has proven its ability to design and execute an investment strategy that builds on supply chain commitments to promote sustainable practices. With the Biosphere Integrity Fund, Clarmondial will further its unique relationships, local presence, and expertise to mobilize funding for gender-responsive climate and nature commitments using an innovative blended finance investment strategy and a technical assistance facility. This will provide longer-term capital for on-farm, supply chain, and landscape investments, including payments for ecosystem services, such as carbon insets (within value chain greenhouse gas mitigation), high-quality offsets, and where appropriate, credits under the emerging United Nations Framework Convention on Climate Change (UNFCCC) Paris Agreement Article 6 Framework.

The Biosphere Integrity Fund has been conceptualized through the Business Case for Collective Landscape Action, an initiative supported by the U.S. Agency for International Development (USAID) and executed in collaboration with the Rainforest Alliance (RA), Conservation International, and CDP. Clarmondial recently [announced](https://www.rainforest-alliance.org/press-releases/catalyzing-impact-investment-in-the-mount-kenya-landscape/) that it will execute a pilot transaction in the Mount Kenya landscape, in collaboration with RA Kenya and the IKEA Foundation. 

Tanja Havemann, Co-Founder and Director of Clarmondial, emphasized the importance of Convergence’s support: “The Biosphere Integrity Fund builds on many years of work with international and local groups to consider planetary boundaries in business operations, assessing supply chains, sourcing landscapes, and private investments. We have a strong pipeline based on our existing business relationships, and we see the importance of establishing robust frameworks and partnerships that contribute to primary data collection and integration at the fund and transaction level, so business decisions can be informed by material nature and livelihood issues, and these can be integrated into investments. Convergence supports this work, as it is also intertwined with gender action towards climate adaptation and resilience.”

“The Biosphere Integrity Fund will promote sustainable agriculture in emerging markets worldwide, while creating valuable opportunities for improving women’s livelihoods,” says Convergence CEO, Joan Larrea, “Clarmondial’s track record coupled with its focus on gender-smart sustainable agricultural supply chains will make it particularly compelling to investors seeking impact alongside financial return.”

__About Clarmondial AG__ 
Clarmondial creates value by proactively designing and implementing investment solutions within the natural resource management sectors. With expertise and an international network in the corporate, finance, and scientific communities, their multi-disciplinary team has a unique ability to catalyze financing for businesses with the potential for long-lasting impact on society and the environment. Visit [clarmondial.com](http://clarmondial.com/) to learn more.

__About Convergence’s Design Funding Program__ 
Convergence’s Design Funding program operates as a market acceleration tool providing early-stage capital to support blended finance solutions in frontier markets and nascent sectors to accelerate the number of investible transactions in market targeting SDGs. The Gender-Responsive Climate Finance Window, funded by the Government of Canada, provides grant funding for the design and launch of innovative blended finance solutions focused on the intersection of climate change and gender equality in emerging markets globally. Visit Convergence’s [Design Funding page](https://www.convergence.finance/design-funding) for information on submission deadlines as well as other open windows.

__About Convergence__ 
Convergence is the global network for blended finance. We exist to increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals and Paris Agreement.
Our members include private investors looking to diversify their portfolios, businesses seeking capital, as well as public agencies and philanthropic foundations looking to make their funds go further. 

Learn more about Convergence: [www.convergence.finance](http://www.convergence.finance/)

__Media Contact__ 
Karolyn Xie 
Head of Communications (interim) 
Convergence 
karolyn.xie@convergence.finance

[Subscribe](http://eepurl.com/gg_hjf) to receive our news

Convergence awarded a proof-of-concept grant to Clarmondial AG for the Biosphere Integrity Fund to support the transition of emerging and developing market agricultural supply chains and sourcing landscapes.

Convergence supports transition to sustainable agriculture

Convergence grant awarded to support transition to sustainable agriculture landscapes

Convergence and [AVPA](https://avpa.africa/) have renewed a memorandum of understanding (MoU) through a strategic framework aimed at expanding the blended finance ecosystem across Africa. 

AVPA is the leading pan-African network and ecosystem builder for social investors, bringing together investors to collaborate, mobilize, and deploy capital across grants, debt, or equity, as well as human and intellectual capital for maximum social impact. 

To support the continent’s progress towards the Sustainable Development Goals (SDGs) and African Union’s Agenda 2063, Africa requires financing of [$1.6 trillion](https://www.uneca.org/economic-report-on-africa-2024) through 2030. Blended finance is one way to mobilize private capital at scale in the region.

Under this MoU, Convergence and AVPA will collaborate on capacity and knowledge building for key stakeholders in the region, work together on creating Africa-focused knowledge assets and research, and jointly develop and manage a new blended finance executive education program. 

Additionally, the organizations will engage in influencing and convening activities aimed at advancing the catalytic use of philanthropic capital through blended finance structures. These activities include conferences, roundtables, workshops, and more.

“Blended finance is crucial to the achievement of the Sustainable Development Goals in Africa,” says Frank Aswani, CEO of AVPA. “The strategic partnerships and conditions required for blended finance structures to succeed can effectively enable private sector investment in both micro, small, and medium enterprises and large-scale projects across Africa. This partnership between these leading networks will take us several steps closer to this goal.” 

“Convergence shares AVPA’s vision for an African continent where collaborative and strategic investment results in the achievement of the SDGs,” says Aakif Merchant, Director at Convergence. “This deepening of our strategic partnership with AVPA will serve as a force multiplier to supporting the development of the continent’s growing blended finance ecosystem.”

Convergence and AVPA have deepened their partnership through a strategic framework aimed at expanding the blended finance ecosystem across Africa. 

Convergence and AVPA Deepen Partnership

Convergence and AVPA Deepen Partnership to Grow the Blended Finance Ecosystem across Africa

Last month, Colombian President Gustavo Petro’s ambitious proposed health reform was rejected by the country’s Senate committee, sparking further debate on the future of healthcare reform across the Latin America and Caribbean (LAC) region. 

One possible avenue to addressing issues around healthcare provision could be by using public and philanthropic resources to mobilize greater private sector investment in the sector through blended finance structures. 

Currently the government reports [to owe](https://www.reuters.com/world/americas/colombian-senate-committee-rejects-petro-government-health-reform-2024-04-03/) about 2 trillion pesos ($511.7 million) to healthcare providers, however providers themselves report that figure is significantly higher, at around 10 trillion pesos. Critics argue that the operational inefficiencies causing these payment delays would not be reduced by increasing centralization and that it would only increase economic strain on providers. 

Improving rural access to healthcare centres while [retaining](https://www.reuters.com/world/americas/colombian-senate-committee-rejects-petro-government-health-reform-2024-04-03/) patient choice and autonomy is another common challenge facing healthcare reform in the region. The COVID-19 pandemic further exposed gaps and shortcomings of the healthcare sector and amplified the need for new solutions, innovations, and increased healthcare capacity and infrastructure.

Issues of healthcare accessibility, rural and last-mile provision, efficient use of scarce public resources, and the involvement of the private sector can be targeted and addressed through blended finance structures. 

Blended finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in sustainable development. Blended finance has mobilized over $200 billion to-date, based on data from Convergence—the global network for blended finance, and there are a myriad of ways to use it to address healthcare accessibility, particularly in rural or underserved markets. 

Countries such as Canada, Japan, Australia, and Tanzania are experimenting with different ways to attract physicians and medical providers to rural areas. Scholarships tied to rural contracts and rural rotations during training, have both shown promising early results. Other methods use concessional or public capital to attract private sector investment towards the provision of care. 

[Impact bonds](https://www.convergence.finance/resource/innovative-finance-in-health-care:-scaling-up-use-of-impact-bonds-in-public-health-care-in-developing-countries/view) have shown promise in incorporating features of results-based grant funding, public private partnerships, and blended finance approaches, while attracting private sector impact investors to fund social and development programs in the healthcare sector. [According to Convergence data](https://www.convergence.finance/resource/blended-finance-for-health-and-education/view), blended health transactions most often include concessional debt or equity (67% of transactions), while design-stage grants account for a higher proportion of health transactions than the overall market (18% vs 12% of all transactions).

Sub-Saharan Africa continues to lead globally in blended finance for health. Examples such as [Medical Credit Fund](https://www.medicalcreditfund.org/), [Access Afya](https://www.accessafya.com/), and [Cameroon Cataract Bond](https://golab.bsg.ox.ac.uk/knowledge-bank/case-studies/cameroon-cataract-bond/), all improve access, outcomes, and affordability for underserved populations through vehicles such as funds, companies, and bonds. 

India is home to several blended finance deals in healthcare. Examples such as [SAMRIDH](https://samridhhealth.org/), [SDG Outcomes Fund](https://www.bii.co.uk/en/our-impact/fund/sdg-outcomes-fund-investment-01/), and the [Utkrisht](https://www.convergence.finance/resource/utkrisht-impact-bond-case-study/view) and [Rajasthan](https://www.convergence.finance/news-and-events/news/21DGFf2v0MmUcA284AmYcc/view) impact bonds pursue similar goals. 

In the LAC region there is a growing body of inspiration: [Novulis](https://novulismed.com/en/) is a for-profit social enterprise dedicated to delivering dental services to the working poor in Ecuador through mobile clinics. Together with [Roots of Impact](https://www.roots-of-impact.org/), Novulis structured a [Social Impact Incentive (SIINC)](https://www.roots-of-impact.org/siinc/) to grow its operations and expand impact for the rural poor, particularly children and youth. Another SIINC example is [Clínicas del Azúcar](https://clinicasdelazucar.com/), a network of clinics that provide specialized diabetes care to low-income populations in Mexico, who also received technical assistance funding from the Inter-American Development Bank ([IDB](https://www.roots-of-impact.org/wp-content/uploads/2021/04/SIINC-Case-Studies-CDA-Final-Results-2021.pdf)).  Finally, the [Deutsche Bank Eye Fund](https://country.db.com/usa/responsibility/community-development/social-venture-funds/featured-partners) provides affordable loan financing for sustainable eye care programs in developing countries, including Latin America. The fund supports the development of sustainable and accessible eye care for the world's poor while providing a near-market return for investors and post-investment technical assistance for borrowers.

As healthcare reformers continue to reshape Colombia’s healthcare landscape, an activity being mirrored across the LAC region, blended finance could be a powerful tool to address market apprehension while expanding developmental impact in the space.

Learn how blended finance could be used to address market apprehension while expanding developmental impact in the LAC region's healthcare space.

Blended Finance For Health Goals in Colombia

*Toronto, 30 April 2024* —Today, the global network for blended finance, Convergence, released the [8th edition of the State of Blended Finance report](https://www.convergence.finance/resource/state-of-blended-finance-2024/view).

Convergence’s flagship report offers an updated analysis on blended finance in emerging markets and developing economies (EMDEs), covering sectors, vehicles, regions, and investor trends. The sectors explored in this report include agriculture, energy, financial services, health and education, and infrastructure.

Following a 10-year low in aggregate blended finance volumes in 2022, Convergence observed a market rebound in 2023, reaching a 5-year high of $15 billion. 

Additional key report observations include: 
- 2023 saw a greater frequency of deals over $100 million compared to the previous two years (40% of deals in 2023, 17% in 2022, 28% in 2021). 
- There was a significant increase in the cadence of blended finance over time, with the last decade seeing 85 deals per year on average, vs. 122 annual transactions recorded on average from 2021 to 2023.
- Climate blended financing totals increased by 107%, from $5.6 billion in 2022 to $11.6 billion in 2023, with 48% of 2023 climate blended finance deals exceeding $100 million, compared to 24% in 2022 and 41% in 2021. A complete analysis on the climate blended finance market will be released in Fall 2024.

“The data point to continued mainstreaming of blended finance as a tool as well as progress in scaling up the practice,” says Convergence CEO Joan Larrea. “We are taking steps in the right direction to close the Sustainable Development Goals’ financing gap but we must stride farther and faster to raise the trillions needed to achieve the 2030 Agenda.” 

Among the report’s authors, Convergence Manager Andrew Apampa remarked on the guiding questions that the team set out to answer: “For the first time, we reflect on some of the regulatory challenges identified by large-scale commercial investors active in blended finance while also presenting insights on blended finance from stakeholders in the regulatory and supervisory communities. In doing so, we hope to shine a light on how underlying conditions that enable blended finance can be improved."

With contributions from the Network for Greening the Financial System and the Toronto Centre, the report examines key regulatory roadblocks faced by large-scale commercial investors when investing in blended finance vehicles and presents recommendations on how to address these challenges.

The report also explores the state of blended finance data transparency by examining the methodological differences underlying blended finance data and market trends by three of the largest blended finance data collectors, namely the Organisation for Economic Co-operation and Development (OECD), the DFI Joint Working Group on Blended Concessional Finance, and Convergence. The report identifies recommendations for development actors, blended finance practitioners, and data providers to support information-sharing in blended finance. 

Analysis in the report draws from Convergence’s Historical Deals Database, the largest and most detailed database of historical blended finance transactions, comprising 1,123 blended finance transactions with a total investment of $213 billion.

[Read the State of Blended Finance 2024 report here.](https://www.convergence.finance/resource/state-of-blended-finance-2024/view)

__About Convergence__
Convergence is the global network for blended finance. We exist to increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals and Paris Agreement.

Our members include private investors looking to diversify their portfolios, businesses seeking capital, as well as public agencies and philanthropic foundations looking to make their funds go further.

__Media Contact__ 
Karolyn Xie 
Head of Communications (interim) 
Convergence 
karolyn.xie@convergence.finance

State of Blended Finance 2024 April report provides analysis and insights on the entire blended finance market, including blended finance activity across sectors, regions, investors, investment structures, development impact generation, and more.

Convergence launches the 2024 State of Blended Finance

Global blended finance volumes reach 5-year high

Established in 1898, Bechtel is a global engineering, procurement, construction, and project management company. Bechtel has helped customers complete more than 25,000 projects in 160 countries on all seven continents.

Housed within Bechtel Infrastructure, bechtel.org is the corporation’s social enterprise. Structured as a breakeven business, their mission is to help build resilient and sustainable communities in frontier and emerging markets through technical advisory and project management. bechtel.org originates its own projects, partnerships, and financing and measures impact. Their focus is execution and delivery; however, they have also been involved in project development.

__Tell us about the interaction between Bechtel and bechtel.org?__

bechtel.org was formed as a part of Bechtel’s sustainability journey. While exploring ways to leverage Bechtel’s core capabilities to support underserved communities in developing countries, we tested the concept with various friends in the non-profit sector and launched the Building Resilient Communities corporate initiative. We deployed technical experts into projects in Kenya, Nigeria, Philippines, and Peru and found our expertise in helping local teams manage and deliver projects was a demand driver. We also sought feedback from other corporate social enterprises and found Bechtel’s global reach and depth of experience was a key value proposition. Hence, we kept the Bechtel name and simply added .org instead of creating a separate organization with a new name. This early work informed our executive leadership and shaped bechtel.org’s business model and impact framework, which is distinct from Bechtel Foundation, Bechtel’s CSR initiatives, and Bechtel’s Sustainability and ESG. 

Our integration and interaction with Bechtel Corporation is intentional and synergistic. We’re governed by a Board of Advisors, an Impact Committee that assesses and evaluates our projects, and an executive sponsor that keeps us connected to the broader enterprise. We are challenged by our Board to demonstrate *why this project* and *what impact we leave behind*. We apply Bechtel’s business process and procedures to develop and deliver projects. And while we leverage Bechtel’s global resources, we do not use bechtel.org to bring commercial advantage to Bechtel. Once there’s a project scope and financing, we recruit and onboard talent from Bechtel’s global projects into bechtel.org (we do not outsource) and then integrate them into local implementing organizations. We benefit from accessing a global pool of Bechtel colleagues with a diverse set of experiences, competencies, and skills. This means we can form integrated teams that can transfer Bechtel’s knowledge and technical know-how to local organizations so they can build their own capacities to deliver projects. 

We’re also sector agnostic. For example, if logistics or infrastructure (e.g., storage and process facilities) is part of a solution to boost food security in the agriculture sector, we’ll get involved. We’ll collaborate with any organization – non-profit, for-profit, government – that share our values and interests and complement our capabilities. 

Increasingly, we see this synergistic integration with Bechtel Corporation as a value proposition for blended finance and impact investors as we can help de-risk investments to local firms, improve their project’s certainty of outcome, and help ensure the additionality of social impact is delivered.

__What is your approach to impact infrastructure? How does blended finance support this?__

For bechtel.org, the infrastructure’s value to the community is not the asset itself but the services it provides and the additionality it creates – that’s impact infrastructure. We focus on the overlooked elements like operations and maintenance (O&M), which, if neglected or addressed downstream in the project, put the intended impact at risk. For example, if the aim is to expand access to healthcare for women by solarizing health facilities in rural communities, and then a technical component of the solar energy system fails in a year because there is no O&M or sustainable financing, there’s no impact.    

Issues arising from O&M or the lack of an enabling environment to sustain a project mean we spend a lot of time on engaging and supporting the ecosystem of local actors who have a stake in the durability of the project. This is very time-consuming and often requires bechtel.org becoming political athletes, but it’s important and necessary if we are focusing on the long-term. 

We also measure. We want to demonstrate the correlation between infrastructure and social impact. Because we could not find an external framework that was fit for purpose, we developed our own and are road-testing it on our projects. Our intent is to build a body of knowledge and share how we’re measuring infrastructure with a community of interest. We have a full-time impact analyst devoted to this. 

These experiences have been part of an ongoing rethinking and reorientation of bechtel.org and blended finance is a key part of this evolution. Catalytic capital and long-term investment from a mix of partners (e.g., foundations, banks, DFIs, aid agencies, communities, corporates) is critical to covering the costs associated with project development, capital expenditures, operating expenses, and ensuring impact. Blended finance structures discipline partners to focus on the durability of the project to achieve the intended impact.

__What are the advantages of leveraging a blended finance approach? Can you give us some examples of specific transactions that illustrate this?__

Blended finance helps bechtel.org in two ways:

One of the strategic pivots we’re taking is to become technical assistance facilities or accelerators to blended finance or impact funds that want to de-risk their investments, build local capacity, and deliver impact. In addition to our technical expertise in project delivery, we bring a ready-made facility with a structure, governance, and transaction model that can bolt onto these funds. This blended approach offers several advantages: risk mitigation, access to capital, mobilizing private investment, and additionality. We’re currently working with a financial intermediary to develop a climate adaptation fund and accelerator targeting Southeast Asia. We hope to replicate this for Africa and Latin America. Blended finance allows us to align stakeholder interests to deliver a project that meets the unique needs and priorities of communities. We can solve complex problems from a position of strength and often that strength is the partnership. 

Second, a few of our current projects use a pilot-test-scale approach. Blended finance plays an important role particularly in seed funding, de-risking, capacity building, and demonstration effect. In Peru, seed capital from mining companies enabled us to pilot an innovative thermal harvesting system that can futureproof thousands of indigenous homes in the remote Peruvian Andes from extreme frost. In India, seed capital from an insurance company facilitated an early assessment of a nature-based solution that regenerates polluted canals for productive use and flood mitigation. In Zambia, catalytic capital from a public aid agency enabled us to pilot a project to increase transactions between smallholder farmers and commodity buyers to reduce post-harvest loss and bolster food security. Blended finance allows us to align incentives and explore innovative financing structures to scale these projects. 

__How does bechtel.org apply a gender lens to its blended finance transactions?__

In all our projects, we measure specific metrics around access to services (e.g., health, education, jobs) that contribute to impact on women and other marginalized demographics (e.g., migrants, youths). For example, we are developing an accelerator targeting Ukraine migrant-owned/operated SMEs and developed a vulnerability lens to identify and assess women-led SMEs that can be suppliers or service providers for energy transition projects in Europe and/or Ukraine’s future reconstruction. 

Women are also part of the design thinking process for our current projects. In Peru, the thermal harvesting system mentioned earlier was based on the input of women as to what is a living temperature inside the home when temperatures drop below -10 degrees Celsius at night. Similarly in India, women were among the 350 consultations to help us identify the appropriate technology for a nature-based infrastructure solution. Our approach is to be intentional and upstream on the inclusion of women as part of the solution.

__Have you faced any interesting or unexpected challenges in your blended finance journey?__

Blended finance has many positives for bechtel.org. With multiple partners the amount of time to align interests and the due diligence required on each of the investors was somewhat unexpected. Despite these time challenges it's the right thing to do. I also did not expect to spend a year studying blended finance models. We knew the market was moving in this direction and it was critical to learn how it works and more importantly how we fit. It was one of the reasons we became a member of Convergence.

__What are some lessons you have learned so far about measuring the impact and evaluating the success of blended finance transactions?__

We’ve learned that because of our business model and the nature of our projects, bechtel.org may never participate on a project long enough to contribute to its full impact, but we can be there long enough to position the project to achieve it. We also learned that we need to measure attribution and contribution separately. Our measurement framework is implemented in two parts: attribution to bechtel.org and the project’s overall contribution to impact. By separating the two we can distinguish between the level of control we have on the project and, alongside with our partners, capture the project’s overall contribution to impact. 

__What have the different types of stakeholders that you’ve worked with looked for in blended finance deals?__

Our stakeholders have diverse objectives, preferences, and expectations. In our projects, public sector investors are focused on policy alignment and impact measurement while private investors prioritize financial returns and risk mitigation. Philanthropic organizations tend to emphasize innovation, scalability, and partnerships while DFIs are interested in alignment with their development mandate and crowding-in private capital. I would say all of them support blended finance deals that increase local capacity building and technical assistance.

__How do you see bechtel.org’s blended finance activities evolving in the future? What is next for the organization?__

As I highlighted earlier, we’re positioning bechtel.org to be a technical assistance facility or accelerator to blended finance or impact investment funds. For us these financing models generate the kind of scale, durability, and impact that Bechtel is known for.

Hear from Tam Nguyen of bechtel.org on their approach to impact infrastructure, blended finance, gender, and more.

bechtel.org Member Spotlight

bechtel.org Member Spotlight with Tam Nguyen

Latin America faces formidable challenges in maintaining access to capital against the backdrop of climate change and ecosystem degradation. Nearly $107 billion in additional investment is required per year in the region to support nature-based solutions (NbS) and align with the Rio Convention Targets1. Nature-based solutions play a vital role in maximizing the impact of capital invested in Latin America’s infrastructure and have high potential to contribute to the Sustainable Development Goals (SDGs).

AMPLO Impact Investing (Amplo)’s Blooming Roots Fund is designed to invest in gender inclusive NbS-aligned sectors in Latin America. Amplo is working with Grassroots Business Fund (GBF) and Andes Impact Partners (AIP), a spin-off of GBF, to design and operate the fund. 

## Feasibility study grant for the Blooming Roots Fund 

Convergence [awarded](https://www.convergence.finance/design-funding/grant-portfolio/3wYP2QawPGpubU3phuxxup/view) a feasibility study grant to Amplo under the [Gender-Responsive Climate Finance Window](https://www.convergence.finance/design-funding/open-window/gender-responsive-climate-finance-window) funded by Global Affairs Canada, for the design of the Blooming Roots Fund—a $50 million, blended fund that aims to invest in a diverse portfolio of for-profit NbS enterprises (NbSEs) focused on sustainable agriculture, sustainable tourism, health and personal care bio-products as well as nature-tech businesses that allow the scaling of portfolio companies in Latin America. The fund will invest in NbS-aligned sectors across Colombia, Peru, and Central America supporting gender-inclusive businesses that foster sustainable use of natural resources. 

The Blooming Roots Fund employs a blended finance strategy that combines innovative and flexible financing and technical assistance (TA). The fund aims to utilize investment capital to make direct investment into NbSEs and offer first-loss capital along with a guarantee to reduce investment risk. TA will support investees to gain new skills and improve their financial performance and capacity to generate impact. 

## Targeting climate and gender 

The Blooming Roots Fund aims to contribute to the development of NbSEs as a viable and long-term solution for addressing climate adaptation and mitigation and to bridge rural and gender gaps. The fund focuses on rehabilitating and strengthening the entrepreneurial ecosystem, targeting rural populations living in areas where economic activity relies on land use or exploitation.

TA will include opportunities to strengthen businesses’ environmental management, including the provision of necessary tools for implementing sustainable practices and enabling appropriately delivered NbS, such as support for carbon certification and payment for ecosystem services structuring. Additionally, investees will receive gender-focused TA allowing them to develop gender-inclusive company policies that will foster female leadership and skills development to close information, financial, and digital literacy gaps.

Through the fund, over 400 community members will gain access to increased income and improved knowledge tools with 50% expected to be women. The NbSEs supported through the fund aim to restore natural habitats, protect the ecosystems of 1,000 ha of land, and capture 27,855 tons of CO2 through carbon sequestration.

## Challenges during the design process

In its original design, the fund aimed to primarily support smaller businesses, however managing many small investments proved costly and inefficient. To address this challenge the fund has developed a diversified investment strategy to pool resources from larger investments to support smaller ones. The fund uses a variety of long-term performance-based instruments, including revenue-based finance and mezzanine debt, and convertible debt or pure equity instruments for ecosystem enablers (innovation and tech-based businesses supporting NbSEs). Each investment is evaluated on a case-by-case basis to meet the investee’s needs.

Investors often perceive NbSEs and SMEs as high-risk investments. To mitigate this perceived risk, the Blooming Roots Fund has implemented risk reduction measures, including utilizing self-liquidating instruments, offering guarantees, and providing first-loss capital funded by grants. These mechanisms help reassure investors and make investment opportunities more attractive. 

Data availability for benchmarking purposes can be limited, especially in the context of supporting NbSEs and SMEs. To meet this challenge, the fund developed their own benchmarking system leveraging data drawn from previous advisory work and a comprehensive baseline study conducted on the ground. Using this data they have gained valuable insights into how to effectively support target businesses, particularly with a gender-smart approach.

![bloomingrootsfund update](//images.ctfassets.net/4cgqlwde6qy0/25uLZ4R1sc51LrS89jqrj2/1b818e8e7700dfd61f1c8905d07c37da/bloomingrootsfund_update.png)

## How Design Funding has helped to advance the solution

Convergence's Design Funding support to the Blooming Roots Fund has significantly advanced the fund’s efforts on multiple fronts. Design Funding has empowered Amplo to allocate more resources towards refining their structure and strengthened their fundraising endeavors by financially supporting their team's commitment. Feedback from Convergence has helped them enhance their investment thesis and refine their materials. Convergence’s support has also served as a compelling marketing asset for the fund, enhancing its credibility and appeal in the market.

## The importance of blended finance

Creating a robust pipeline of NbSEs is key to the fund achieving its mission of driving long-term, positive social, environmental, and economic change. To this end, the Blooming Roots Fund’s blended structure is essential. Utilizing grant capital for investment readiness ensures that NbSEs are adequately prepared to meet the fund's investment criteria, leading to pipeline development, derisking, and proper implementation of sustainable business models within the realm of NbSEs. This proactive approach to pipeline development increases the likelihood of identifying viable investment opportunities and contributes to the fund's overall impact objectives.

The fund's blended structure derisks the typical challenges sustainable business models often face including market volatility, regulatory uncertainties, and limited access to capital. Guarantees and first-loss grants encourage private investors to participate while instilling confidence in NbSEs, enabling them to pursue innovative solutions without fear of failure.

Proper implementation of sustainable business models is equally as important as investment. The fund's TA equips NBSEs with the knowledge, skills, and resources needed to empower them to execute their business strategies while maximizing social, environmental, and financial impact. This approach fosters resilience and adaptability within NBSEs allowing them to navigate challenges and capitalize on opportunities in a rapidly evolving market landscape.

## The way forward

Building on learnings from its initial pilot, conducted in the Providencia and Santa Catalina islands in Colombia, Amplo designed the Blooming Roots fund with the aim to expand its reach by implementing scalable and replicable strategies and further refine its investment approach to optimize the use of resources in the target areas for higher potential impact. The fund is currently completing its design and structuring activities and conducting stakeholder consultations.

The fund is also actively seeking alliances with organizations that share a commitment to sustainable development and have a proven track record of success in complementary sectors. They are currently exploring partnerships with organizations like [Cacao for Development](https://www.partners.net/program/cacao-for-development/#:~:text=C4D%20is%20a%20US%2425,complementary%20supply%20chains%20in%20Colombia), whose technical assistance program in the cacao and complementary crops value chain has garnered positive results in the region. Through collaboration with similar organizations the fund aims to leverage their expertise, networks, and resources to amplify impact, expand reach, and drive meaningful change in target communities and sectors.

*1. [State of Finance for Nature 2023, United Nations Environment Program](https://www.unep.org/resources/state-finance-nature-2023).*

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*Have a blended finance solution at the intersection of climate change and gender equality? Apply for funding from our [Gender-Responsive Climate Finance Design Funding Window](https://www.convergence.finance/design-funding/open-window/gender-responsive-climate-finance-window), which awards early-stage grant funding for the design and launch of innovative blended finance vehicles focused on climate change and gender equality in emerging markets globally.*

*To see what Convergence has supported to date, review our Design Funding grantee portfolio [here](https://www.convergence.finance/design-funding/grant-portfolio).*

Learn how funding from Convergence has supported the Blooming Roots Fund, challenges they've faced, and what's next.

Grantee Profile: AMPLO Impact Investment

Grantee Profile: AMPLO Impact Investment - Advancing gender focused nature-based solutions

FOUNT is a leading impact investment firm, providing strategic advisory and investment management services focused on driving social and environmental impact alongside financial returns in emerging markets. 

Building upon earlier experiences in their previous roles, Bernadette Blom and Bob Assenberg established FOUNT in 2013 as a strategic advisory firm, specializing in impact investing within emerging markets. As FOUNT advised and supported its numerous clients to achieve substantial impact, the firm expanded their involvement to encompass fund and investment management activities, leveraging their existing networks and expertise in setting up and managing impact investment funds. This evolution started with the management, restructuring, and eventual divestment of an affordable housing portfolio in emerging markets.

We spoke with co-founder Bernadette Blom about FOUNT’s portfolio, blended finance insights and learnings, integrating a gender lens, and more.

__Can you tell us about FOUNT’s portfolio of impact funds?__

FOUNT currently oversees a diversified portfolio of four impact funds that span various sectors, geographies, and instruments, all characterized by innovative and sustainable business models.

Since 2017, we manage __BIX Capital__, focusing on pre-financing impact receivables (mainly carbon credits) in Sub-Saharan Africa. Additionally, since 2019 we are Fund Manager for the __Good Fashion Fund__, contributing to systemic change within the textile and apparel industry and as of 2020, we serve as the Investment Advisor for the __AGRI3 Fund__, collaborating with Cardano Development, to provide guarantees for sustainable agriculture, forest protection, and improved rural livelihoods.  FOUNT recently added the __Organic Development Finance__ to its portfolio, dedicated to providing affordable finance for organic agricultural producers in developing countries.

Our commitment revolves around innovative, unique, and impact-focused initiatives, with blended finance constituting a central role in all our endeavours.

__What is FOUNT’s approach to blended finance? What have you observed in your practice of blended finance?__

The impact funds under our current management exhibit a blended capital structure comprising distinct risk/return tranches. This structural composition is imperative for innovative impact funds without a proven investment thesis. In instances where risks are indeterminate, investors frequently perceive them as high, underscoring the indispensability of a blended capital structure to stimulate private investor participation. The strategic allocation of varying risk/return profiles across diverse investors within a unified capital structure facilitates the attainment of substantial impact.

As a prudent practice, ascertained from experience, we observe that upon establishing a robust track record, the concessional tranche can be strategically diminished. Simultaneously, leverage can be augmented for subsequent funds, capitalizing on the diminished risk perception among investors. This nuanced approach aligns with industry best practices and enhances the overall viability and attractiveness of subsequent investment vehicles.

__FOUNT has an array of blended transactions, ranging from fashion, to clean cooking to agriculture. What lessons have you learned working with different instruments and across sectors?__

When establishing an innovative fund, particularly one entering a new sector or featuring a novel investment instrument, as exemplified by our experience with all our mandates being first-of-its kind impact funds, the primary objective is to showcase the financial, environmental, and social viability of the investments. In the context of such a ‘demonstration fund’, the inclusion of junior equity/first-loss is imperative to attract private investors. 

The distinctive innovation introduced by BIX Capital (investors include Shell foundation, International Finance Corporation (IFC), FMO: Dutch Entrepreneurial Development Bank (FMO), and U.S. International Development Finance Corporation (DFC)) lies in its unique investment instrument, impact receivable finance. Under this mechanism, carbon credits generated through the utilization of cookstoves or other impact products are pre-sold to reputable offtakers, based on a pre-agreed volume and price . The underlying agreement serves as collateral, mitigating the need for recourse to the balance sheet of the financed SME. Since its inception BIX Capital has successfully demonstrated the efficacy and scalability of this business model, and is now fully invested prompting the initiation of a follow-on fund, BIX2, characterized by increased leverage, a larger fund size, and a broader investment mandate.

AGRI3 (investors include the Dutch Government, Rabobank, and Global Environment Facility (GEF)) , on the other hand, specializes in providing risk mitigation, employing various types of guarantees to empower financial partners in developing countries to collaborate with their clients towards greater sustainability, encompassing areas such as sustainable agriculture, deforestation avoidance, and support for rural livelihoods. AGRI3 facilitates transactions that might be beyond the capacity of individual partners, ensuring scalability through collaborative efforts. 

__Tell us about a past transaction that benefitted from using a blended finance approach.__

The strategic utilization of blended finance empowers FOUNT to foster innovation and engender positive environmental and social impact, aligning seamlessly with our commitment to maintaining an impact-focused and innovative approach in managing our funds.

A notable illustration of the successful implementation of blended finance is the establishment of the Good Fashion Fund in 2019.The fund strategically targets apparel manufacturers. Investments are directed towards impactful equipment that results in a substantial (>50%) reduction in the utilization of energy, water, or chemicals in the production process, concurrently improving workers' conditions and rights.

The textile sector is known for its environmental impact, challenging labor conditions, and reputational challenges. Laudes Foundation initiated the fund, acknowledging the pressing need for investments and the considerable potential for positive impact within the sector. The junior equity investments from Laudes Foundation and the Mills Fabrica catalyzed senior debt funding from Rabobank. This collaborative approach not only validated the viability of the business model but also exemplified the indispensability of the blended finance strategy in overcoming inherent challenges and propelling the success of such initiatives.

__How does FOUNT integrate a gender lens into its investment decisions?__

Gender inequality remains a formidable global challenge, and FOUNT is unwaveringly committed to the rights of women and contributing significantly to the realization of gender equality. Within our funds, women, whether as customers, company proprietors or employees, play pivotal roles. A comprehensive gender lens is meticulously integrated into the investment decisions of AGRI3, Good Fashion Fund, and BIX. Each fund adheres to an individualized gender policy, incorporates leading industry standards and best practices, and tailors to address specific gender challenges within the targeted sectors.

In the case of BIX2, the fund has undertaken multifaceted adaptations to the 2X Challenge criteria, aiming to yield tangible gender outcomes from its investments. The primary focus is on the percentage of investments targeting products specifically designed to enhance the livelihoods of underserved female populations. Our steadfast commitment involves dedicating 80% of investment capital, via SME finance, to such products and services. We are committed to quantifying the number of women reached and calculating time saved by women, utilizing a proprietary model. Where feasible, we intend to pre-finance companies based on monetized time savings, denoted as "Gender Credits." 

Beyond our core focus, we actively engage with portfolio companies to promote gender-positive workforce and supply chain policies and. Additionally, we consciously exhibit a positive bias towards investing in female-led or owned businesses.

__What are some key challenges FOUNT has faced in your blended finance journey?__

Securing risk capital, particularly for the first-loss/concessional tranche, poses a considerable challenge, yet is pivotal for mobilizing private funding, especially for innovative impact funds. 

Our track record has become instrumental in facilitating the expansion of our funds. Given our focus on establishing high-impact, pioneering funds with innovative approaches, operational in developing countries, the associated perceived risks are often elevated. Over the years, we have systematically instituted standards and policies that can be applied across various initiatives, encompassing investment, environmental, and social impact considerations.

__We are seeing lots of interest in the potential for blended finance to enable scaled opportunities and impact. Could you share some insights and advice based on your experience managing funds of a significant size?__

We see many opportunities for blended finance and foresee substantial prospects in its future application. It is often imperative to initiate a first fund to establish the proof of concept. Drawing from the insights gained in this initial endeavor, a considerably larger second fund can be formulated. The second fund typically necessitates a reduced reliance on junior or concessional capital, given that the viability of the business case has been substantiated, resulting in a commensurate reduction in perceived risk.

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

As we focus on the continued management and investment of existing funds in our portfolio, a logical progression for FOUNT is to leverage the insights garnered, sector networks, knowledge, methodologies, and processes from our current funds. These valuable assets will be strategically channeled into the creation of larger follow-up funds, including a first close of BIX2 in 2024 and our imminent plans for GFF 2.0.

Moreover, we are dedicated to exploring new, innovative initiatives capable of generating substantial impact and that have not yet achieved widespread implementation.

__Thinking about your time at FOUNT to date, what has stood out to you?__

FOUNT was founded in 2013 by two visionary entrepreneurs committed to enhancing livelihoods and ecosystems in emerging markets. Presently, FOUNT is strengthened by a dedicated team of international professionals. Over the years, FOUNT has successfully established multiple impact investment funds, disseminated knowledge, and facilitated financial flows to impact investment initiatives. Through the creation of innovative and scalable projects in emerging markets, FOUNT actively contributes to advancing the Sustainable Development Goals.

Our commitment is to persist in this journey alongside our stakeholders, with a focus on expanding FOUNT's influence as an innovator in the sector. Simultaneously, we aspire to maintain our status as an inspiring workplace dedicated to making a meaningful impact.

Hear from Bernadette Blom of FOUNT on their portfolio of impact funds, their approach to blended finance, how they are integrating a gender lens in their work and more.

FOUNT Member Spotlight

FOUNT Member Spotlight with Bernadette Blom

*San Francisco and Toronto, March 20, 2024* —Today, the Catalytic Climate Finance Facility (CC Facility) launched its second call for applications targeting early-stage market-ready blended climate finance structures in developing economies. 

Selected applicants will receive a suite of support—up to USD 500,000 in grant funding, customized technical assistance to address key barriers and mobilize private capital, and access to knowledge-sharing through a learning hub.

Applicants may submit concept notes on the [CC Facility website](https://www.ccfacility.org/apply) until April 24, 2024, with reviews conducted on a rolling basis. 

Launched in 2023 with funding from Bill & Melinda Gates Foundation, Global Affairs Canada, Australia’s Department of Foreign Affairs and Trade, and the International Development Research Centre, the CC Facility is a partnership between Climate Policy Initiative and Convergence, who are combining their expertise to turn innovative financial vehicles into scalable solutions and grow the blended climate finance market. 

Dr. Barbara Buchner, the Global Managing Director of Climate Policy Initiative (CPI), emphasized the crucial role of blended finance solutions in unlocking the trillions of dollars required for climate action this decade. "As the CC Facility embarks on its second cycle, we are confident that our unique blend of grants and acceleration support services can catalyze the development of the next generation of climate finance vehicles," Dr. Buchner said.

Joan Larrea, CEO of Convergence, underscored the CC Facility's role in helping market-ready blended climate finance vehicles scale up quickly. “We know where the roadblocks lie and are putting tools and resources together to support climate solutions while creating a pipeline of investible deals.” Larrea said. “Investors from public, private, and philanthropic sectors will want to invest.

To date, the CC Facility has raised USD 13.5 million and aims to raise USD 100 million in catalytic donor capital to support the launch of blended finance structures closing the climate financing gap and accelerating climate solutions in developing markets.

On April 3, 2024, the CC Facility will host a [virtual information session](https://climatepolicyinitiative.zoom.us/webinar/register/9217110244138/WN_edIRAgf0QA-3ntitiJT1aQ) to cover the features of this application window, provide insights on how to apply, and offer details on the selection process. Interested parties are encouraged to participate to gain valuable insights and guidance for submitting successful proposals.

The call for applications marks the first of two application windows scheduled for 2024, with a second round slated to open on September 19. 

The first CC Facility cohort, featuring six mitigation and adaptation solutions in Sub-Saharan Africa and Latin America, [was announced](https://www.climatepolicyinitiative.org/press-release/catalytic-climate-finance-facility-awards-usd-2-4-million-to-inaugural-class-of-blended-finance-vehicles/) during COP28 last December.

### ABOUT CLIMATE POLICY INITIATIVE
CPI is an analysis and advisory organization with deep expertise in finance and policy. Our mission is to help governments, businesses, and financial institutions drive economic growth while addressing climate change. CPI has six offices around the world in Brazil, India, Indonesia, the United Kingdom, and the United States.

CPI serves as the Secretariat for the [Global Innovation Lab for Climate Finance (the Lab)](http://www.climatefinlab.org/), an incubator program that develops innovative financial mechanisms to drive private investments into climate change mitigation and adaptation in developing economies. 

### ABOUT CONVERGENCE
Convergence is the global network for blended finance. Together with our membership of over 160 public, private, and philanthropic investors, as well as sponsors of transactions and funds, we increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals (SDGs) and Paris Agreement.

Convergence’s [Design Funding and Market Acceleration Program](http://convergence.finance/design-funding) provides early-stage capital to support the design, launch, and acceleration of blended finance solutions targeting the SDGs.

Convergence is headquartered in Toronto and operates globally with a presence in Singapore, La Paz, Kigali, Nairobi and Washington DC.

### MEDIA CONTACTS

__Karolyn Xie__ 
Head of Communications 
Convergence Blended Finance 
karolyn.xie@convergence.finance

__Júlio Lubianco__ 
Communications Manager 
Climate Policy Initiative 
julio.lubianco@cpiglobal.org

__Sam Goodman__ 
Climate Policy Initiative 
sam.goodman@cpiglobal.org

Catalytic Climate Finance Facility opens call for applications of market-ready blended climate finance solutions

Catalytic Climate Finance Facility call for applications

*Figure 1: Market size and growth of blended finance in South Asia*

The latest data brief from Convergence analyzes how blended finance approaches have been deployed in South Asia to date and presents insights from interviews conducted with industry stakeholders. This article provides a snapshot of the data brief, including opportunities and challenges for blended finance in South Asia. 

Click [here](https://www.convergence.finance/resource/blended-finance-in-south-asia/view) for the Blended Finance in South Asia data brief.

In the past two decades, South Asia has experienced significant economic growth. For instance, the region experienced a [growth rate of 5.8%](https://www.worldbank.org/en/news/press-release/2023/10/03/world-bank-expects-solid-growth-but-risky-outlook-for-south-asia#:~:text=WASHINGTON%2C%20October%203%2C%202023%E2%80%94,%2Da%2Dyear%20regional%20outlook.) in 2023, with India accounting for [approximately](https://world101.cfr.org/rotw/south-asia/economics#india-s-rise-drives-growth-in-the-region) 70% of the region’s total economy and almost 75% of the population. Despite this success, South Asian countries continue to face major challenges, such as government debt, which [averaged](https://www.worldbank.org/en/news/press-release/2023/10/03/world-bank-expects-solid-growth-but-risky-outlook-for-south-asia#:~:text=WASHINGTON%2C%20October%203%2C%202023%E2%80%94,%2Da%2Dyear%20regional%20outlook.) 86% of GDP in 2022 across the region. Moreover, some countries, such as Bhutan, Pakistan, and Sri Lanka, face weak private investment, with growth that [has been](https://blogs.worldbank.org/endpovertyinsouthasia/south-asias-economic-outlook-five-charts) negative or near zero. The region is also [vulnerable to natural disasters](https://thedocs.worldbank.org/en/doc/9c70bcc4b291f92a9dba8e4690d04419-0310012023/related/SADU-Oct2023-Highlights-Chapter-1.pdf), made more frequent and intense by climate change. Blended finance can play a role in addressing many such challenges by using concessional catalytic capital to de-risk private sector investment. 

The Convergence Historical Deals Database (HDD) has recorded 167 blended transactions targeting South Asia in part or in full, representing aggregate committed financing of $23.5 billion. A large portion of both the deal count and aggregate financing has targeted India. To provide a more accurate picture of India’s influence on the data, the Blended Finance in South Asia data brief distinguishes deals between India (“India-focused deals”)  and the remaining South Asian countries (“South Asia excl. India”) where appropriate.

# Key takeaways from the brief
### India is South Asia’s largest blended finance player by deal count and financing

Given the size of its consumer market and the prominence of its economy within the region, India is the most active blended finance market in South Asia with 115 transactions, of which 110 transactions are India-focused, while the remainder are also active in multiple other South Asian countries. India is followed in deal count by Pakistan (19), Bangladesh (18) and Sri Lanka (15). 
While India accounts for 69% of blended finance transactions in South Asia, these transactions tend to be small and make up only 59% of aggregate financing in the region. Pakistan, on the other hand, accounts for only 11% of total South Asia transactions but 30% of aggregate financing. 

![How is blended finance deployed in South Asia?](//images.ctfassets.net/4cgqlwde6qy0/mBFPTeCKTYt7ym6Hl8izL/76fd8afba2d7a9c1d97e705018739fd9/SA_DB.png)

*Figure 2: Deal count and aggregate financing by South Asian country*

### Energy and financial services most prominent sectors in South Asia

The top sector targeted by blended finance transactions in South Asia is energy. While demand for energy across South Asia has [increased](https://blogs.worldbank.org/endpovertyinsouthasia/integrated-electricity-market-south-asia-key-energy-security) by over 50% since 2000, renewable energy use varies widely by country. For example, Afghanistan, Bhutan and Nepal have [used](https://www.wri.org/insights/afghanistan-bhutan-and-nepal-grid-renewables-bring-power-remote-villages) small-scale solar and hydropower to bridge the gap between rural and urban energy access, whereas India remains dependent on fossil fuels, with coal [supplying](https://www.eia.gov/international/analysis/country/IND) 44% of total energy consumption in 2020. Blended finance [can help address](https://www.convergence.finance/resource/state-of-blended-finance-2023/view) the financing challenges associated with access to commercial capital for renewable energy by de-risking investment opportunities and crowding in private funding.

Secondly, compared to all HDD transactions, South Asia overall has a higher representation of blended transactions targeting financial services. According to the International Monetary Fund Financial Development Index, South Asia’s financial inclusion is [behind](https://www.elibrary.imf.org/display/book/9781513587219/CH013.xml?rskey=hlLR8u&result=1) its G20 and ASEAN-8 peers; in 2021, only 11% of adults in South Asia were borrowing from and saving with a financial institution. Many adults who do borrow turn to friends and family as a source of funds. Blended finance can help increase financial development by de-risking investments in inclusive financial institutions. 

 ![South Asia transactions by sector](//images.ctfassets.net/4cgqlwde6qy0/3DhZORKp8iDanCcXhL9v8g/5b0206735c6a07bdba21adbf9c7f2f33/SouthAsiaFigure3.png)

*Figure 3: South Asia transactions by sector*

### Projects predominant in South Asia excl. India; funds predominant in India

In South Asia excl. India transactions, projects make up 33% of the blended finance landscape, whereas in India-focused transactions, projects play a smaller role (9%). Meanwhile, funds play a larger role (43%) in blended transactions in India, and a smaller role (32%) in the rest of South Asia. The prevalence of funds among India-focused structures is likely related to the size of the Indian economy and its familiarity to portfolio investors who place money in funds. Other countries in the region may have more difficulty attracting fund investors, even with blending, in which case project finance offers another avenue. Single-asset financings of a sufficient size, credit enhanced through blending, can attract direct investors, especially in established asset classes such as energy. 

![South Asia transactions by blended vehicle type](//images.ctfassets.net/4cgqlwde6qy0/35T54xDLcRWly4UYK4Gg1k/bcd13d7f757b542d812a4f3ae08aebb4/SouthAsiaFigure4.png)

*Figure 4: South Asia transactions by blended vehicle type*

### Opportunities and challenges for blended finance in South Asia

Throughout our interviews with blended finance practitioners across South Asia, several themes arose regarding challenges and opportunities for blended finance in the region. The largest challenge noted is the cost of foreign exchange hedging, which can prohibit poorer countries from accessing capital markets. Inconsistent or archaic legal and regulatory environments is a second challenge that many interviewees spoke about. South Asia is [hampered](https://www.dni.gov/files/images/globalTrends/GT2040/GT2040-5-YR-Regional-2021317-South_Asia.pdf) by outdated legal frameworks and highly bureaucratic systems that can lead to a lack of innovation in the financial sector. A third challenge is a lack of understanding of blended finance structures, leading to hesitancy by investors to provide funding towards these transactions. 

With these challenges come opportunities to increase the use of blended finance in the region. Innovations from South Asian governments and regulators can help to incentivize private investors to participate in blended finance transactions and create an enabling environment. Some interviewees shared examples where governments could have positive impacts, such as through the creation of an overarching regulatory framework for infrastructure development in Pakistan, or the push for a sovereign credit rating in Nepal. A sovereign rating provides information on the background level of country risk that could affect that transaction. The presence of this benchmark allows better calibration of the amount of concessional support needed in a blended transaction to secure private sector interest and could reduce the need for concessional support.

There are also opportunities to increase the use of philanthropic capital to catalyze private investment in South Asia. Currently, regulations in India prohibit the use of corporate social responsibility (CSR) in blended finance structures, however CSR could be a potentially large pool of concessional capital. Meanwhile, there could be an increasing role in blended finance for family offices and high net-worth individuals. 

Finally, blended finance can be used to close the Sustainable Development Goal (SDG) financing gap in climate-focused and social sectors. While the largest opportunities for blended finance in South Asia focus on areas of climate investments like energy storage, micro grids, cooling, and biofuels, there is untapped opportunity to mobilize private capital for health and education. Currently only a small portion of blended finance transactions in South Asia target social sectors such as health and education. Convergence [found](https://www.convergence.finance/news-and-events/news/3sJLhFFmJi5M60tQ7zut69/view) that scaling private financing into these sectors will require the development community to deploy catalytic financing to launch funds of funds to develop a broader investment ecosystem in the space. 

Blended finance can be an effective tool in South Asia’s agenda for sustainable development. The region’s transition to net zero, the opportunities to update legal and regulatory frameworks to create an enabling environment for investors, and the largely untapped pool of philanthropic capital are some of many avenues where the region can benefit from blended finance.

For further information on Convergence’s methodologies, click [here](https://www.convergence.finance/about/data-methodology?). 

__Become a [member](https://www.convergence.finance/membership) and read the [full brief](https://www.convergence.finance/resource/blended-finance-in-south-asia/view).__

How is blended finance deployed in South Asia?

Gender diversity and inclusion in the evolving world of finance is an important strategic imperative to enhance profitability, resiliency, innovation, and business performance overall. Yet, the underrepresentation of women in investment decision-making roles, and in fund management positions, persists. On this International Women's Day, we explore the pressing need for increased gender diversity at the capital allocation level and delve into initiatives by various players across blended finance fund structures that are tackling key barriers to entry that women face including lack of experience and network-building, proper implementation of Gender Lens Investing (GLI) frameworks and inconsistent investor/donor requirements.

### Mentorship and Training

Convergence has tracked over 1,100 blended finance transactions benefiting developing economies, with a majority structured as funds. One of the most significant challenges to increasing women-led funds in emerging markets is the lack of experience and mentorship opportunities for women aspiring to leadership positions. The reality is that social and organizational structures tend to favor male candidates and employees over their female counterparts in the financial sector. Worse yet, first-time female fund managers [face](https://hbr.org/2017/06/male-and-female-entrepreneurs-get-asked-different-questions-by-vcs-and-it-affects-how-much-funding-they-get) an uphill battle with additional scrutiny by investors who tend to ask them prevention-oriented questions about potential for losses, rather than promotion-oriented questions about potential for gains.

Organizations can meet this challenge head on by developing dedicated mentorship programs alongside intentional sponsorship initiatives, and capacity-building activities. For example, [2X Ignite](https://www.2xignite.org/) runs 2XI GP Sprint, a 6-month long capacity-building program aimed at upskilling 100 female-led gender-lens fund managers across Africa to strengthen their fundraising proposition for their investment vehicles. 2X Ignite’s ultimate goal is to grow and support the market for female-led gender-smart fund managers, unlocking more limited partner capital for gender-smart businesses. Another example, [RENEW Capital](https://www.renewcapital.com/) provides customized training for women executives that addresses specific systemic barriers for their career development and leverages their extensive pan-African network to bolster participants’ mentorship opportunities. These efforts focus on building the next generation of female leaders; other efforts address systemic biases toward women. For instance, [Value for Women](https://www.v4w.org/work/gender-in-business-insights/value-for-women-insights-women-decision-makers-issue-4) has  explored why women-fund managers and women investors in emerging markets receive limited funding and determines that enduring systemic cultural barriers are what's holding women back. Value for Women [recommends](https://www.v4w.org/resources/insight-issue-4-women-decision-makers) encouraging limited partners to innovate their decision-making processes through power-sharing with women and other minority groups, piloting co-creation concepts with fund management and investees, as well as fostering an openness to experimenting while listening to investee needs. 

### Perception and Integration of Gender-Lens Investing

The implementation of GLI in investment vehicles presents another challenge. While numerous frameworks and guidelines exist, each investment fund must define its own strategy and investment criteria. We regularly see investment theses for blended transactions with a gender-lens incorporate female entrepreneurs as end beneficiaries but lacking an integrated and intentional female-led approach to internal leadership and investment decision-making within the fund itself.

To address this gap, [FinDev](https://www.findevcanada.ca/en), Canada’s development finance institution, launched a [Technical Assistance Facility](https://www.findevcanada.ca/en/what-we-do/technical-assistance) that guides a select portfolio of fund managers to incorporate a gender lens into their investment processes. This includes supporting women as executives, leaders and investors, based on the 2X criteria. In response to the growing need for support in this area by their portfolio companies, FinDev also produced a training toolkit for fund managers designed to help implement a GLI strategy that also develops gender inclusivity. 

At the fund level, [Chancen International](https://chancen.international/)’s Future of Work Fund (FWF), led by Batya Blankers, illustrates how a blended fund can incorporate GLI into its investment strategy as well as its management approach. FWF provides access to education for marginalized youth across Sub-Saharan Africa. This fund is a women-led initiative that focuses on creating opportunities for traditionally excluded populations, especially women. For Blankers, the attitudes and perceptions held by leadership become reflected in driving FWF’s success: "Our position as a women-led fund enriches our approach, allowing us to bring diverse perspectives to the forefront of financial innovation. The biggest challenge with scaling blended finance solutions in emerging markets is risk perception, but as has been proven multiple times, women are some of the best customers, and we see having a strong gender lens as an opportunity." 

### Investors’ Expectations 

Finally, despite a dual focus on impact and financial return, women fund managers raising gender-lens funds regularly encounter investor reticence. [Terra Global Capital](https://www.terraglobalcapital.com/), a US-based investment manager focused on nature-based solutions, has observed these challenges first-hand in the market. As Leslie Durschinger, CEO and Founder puts it: “These challenges are rooted in implicit biases, limited networks, and gender-related perceptions during the capital-raising process.” Leslie also states that, in her experience, some women-led funds present return potential more conservatively than their male counterparts, at times underplaying the upside potential and inadvertently negatively impacting the assessment of their funds. Leslie attributes the success in gaining investor interest in their new fund, Terra Bella Nature Based Solutions Carbon Fund, to a track record of investment management over 17 years and leveraging a team composed of 50% women.

Investors in blended funds can help shape the investment landscape by setting and encouraging investment criteria that include a higher proportion of women on investment committees or in fund leadership and being open to smaller ticket sizes for small female-led funds. Examples of such initiatives include the [Visa Foundation](https://usa.visa.com/about-visa/visa-foundation.html)’s investment strategy that evaluates investments into intermediaries and funds focused on emerging markets with a gender lens applied all the way from the VC partners and co-investors through to end-borrowers. Their aim is to not only increase access to capital for entrepreneurs in emerging markets, but also raise the amount of women who control the capital from the top. To further illustrate how a gender lens has been applied at the investor level, [C4D Capital Partners](https://c4dpartners.com/)’ Bharat Shubharambh Fund II developed an integrated gender strategy with carried interest linked with a goal of reaching 30% of their investments dedicated to women-owned or led enterprises. Tangible, measurable and intentional goals set at the investor level can drive meaningful outcomes and set market standards. 

### Supporting women-led transactions at Convergence

At Convergence, supporting women-led transactions lies at the heart of our granting activity, where close to 40% of the blended finance vehicles supported are transactions led by women. As investors increasingly seek to embrace roles as catalysts for change, supporting women-led funds is critical to achieve diversity in investment decision-making and achieving an equitable financial landscape.


The Gender Advantage: How to Bolster Women-Led Funds in Blended Finance 

How to Bolster Women-Led Funds in Blended Finance 

*This op-ed was originally published on [Devex](https://www.devex.com/news/opinion-a-whale-watching-moment-in-the-blended-finance-ecosystem-107080).*

When a pod of whales swims by, it’s worth putting down the binoculars to witness the moment in full color. That just happened in our world of blended finance. 

Blended finance activity has remained relatively flat, gauging from the data [Convergence](https://www.devex.com/organizations/convergence-64325) has been able to verify and record stretching back over a decade. Its ups and downs have reflected the broader patterns in portfolio investment in developing markets, but we haven’t seen the swift upward trajectory that would signify that blended finance has become a routine solution for stretching development dollars or making transactions bankable for global investment houses. Our own [State of Blended Finance 2023](https://www.convergence.finance/resource/state-of-blended-finance-2023/view) tells this story.

Then came 2023 and, significantly, the 28th United Nations Climate Change Conference, or COP 28.

After having watched the horizon for a single tailfin that would signal change, we suddenly saw an entire pod of whales breach the surface: 

First, the [SDG Loan Fund](https://www.fmo.nl/news-detail/6fb79fab-ec10-4e7e-9fe8-d908dda30b06/sdg-loan-fund-mobilizes-usd-1-1-billion-of-investor-capital) closed at $1.11 billion. This transaction alone represents more than 15% of the volume of blended flows captured for 2023 so far. Conceived by [Allianz Global Investors](https://www.devex.com/organizations/allianz-global-investors-138751) and the Dutch development bank [FMO](https://www.devex.com/organizations/netherlands-development-finance-company-fmo-52091), the fund [benefits from multiple forms of catalytic capital](https://www.convergence.finance/resource/SDG-Loan-Fund/view), including a $111 million first-loss investment from FMO, which is credit-enhanced with a $25 million unfunded philanthropic guarantee provided by the MacArthur Foundation. Together, these instruments are unlocking $1 billion in private capital toward affordable energy, financial inclusion, and sustainable agriculture in emerging and frontier markets.

Also financially committed is [ALTÉRRA](https://www.alterra.ae/), a $30 billion global investment fund targeting climate solutions, of which [$5 billion in catalytic capital](https://www.cop28.com/en/news/2023/12/commits-US$30-billion-in-catalytic--capital-to-launch-landmark) will go to the global south. Launched at COP 28 with funding from the United Arab Emirates alongside inaugural partners [BlackRock](https://www.cop28.com/en/news/2023/12/commits-US$30-billion-in-catalytic--capital-to-launch-landmark), [Brookfield](https://www.devex.com/organizations/brookfield-136455), and [TPG](https://www.devex.com/organizations/the-prospective-group-inc-tpg-133062), the fund aims to mobilize $250 billion by 2030. We can’t tell yet how closely ALTÉRRA’s definition of global south overlaps with Convergence’s world of blended finance — we track activity mostly in countries eligible for official development assistance. Let’s hope some of that $5 billion goes to geographies otherwise off the maps for the parties involved.

Then the [Monetary Authority of Singapore](https://www.devex.com/organizations/monetary-authority-of-singapore-mas-120102) announced the [Financing Asia’s Transition Partnership (FAST-P)](https://www.mas.gov.sg/news/media-releases/2023/acp-ifc-mas-and-temasek-establish-a-green-investments-partnership-in-asia), which aims to raise $5 billion for green and transition projects in Asia. Two partnerships have resulted from this blended finance initiative: the [Green Investments Partnership](https://www.mas.gov.sg/news/media-releases/2023/acp-ifc-mas-and-temasek-establish-a-green-investments-partnership-in-asia) and the [Energy Transition Acceleration Finance Partnership](https://www.mas.gov.sg/news/media-releases/2023/adb-geapp-and-mas-to-establish-energy-transition-acceleration-finance-partnership-in-asia). These partnerships don’t qualify as financial transactions that Convergence would record in our blended finance database but they demonstrate changes we have been calling on donor governments to implement.

Via these partnerships and other moves, Singapore has set out specific targets for the use of blended finance to accelerate development and climate action and backed up those targets with regulatory action to ease the path for private sector capital to flow.

Two blended finance platforms still in process bear mentioning: [Project GAIA](https://www.greenclimate.fund/project/fp223), with a target size of $1.5 billion (including an already landed commitment of [$152.5 million](https://www.greenclimate.fund/project/fp223) from the Green Climate Fund), and [Allied Climate Partners](https://www.alliedclimate.org/), aiming for [$825 million](https://www.prnewswire.com/news-releases/allied-climate-partners-launches-to-catalyze-bankable-climate-related-projects-in-emerging-economies-302003275.html). 

Led by FinDev Canada and Mitsubishi UFJ Financial Group, Project GAIA is proposed to be a climate blended finance platform that will blend commercial and concessional capital for mitigation and adaptation investments in emerging markets. Importantly, 70% of GAIA funds would be dedicated to climate adaptation projects, providing much-needed financing to the sector, while at least 25% of financing will go toward the groups of least developed countries, or LDCs, and small island developing states, or SIDS.

Meanwhile, a consortium of philanthropies and investors launched the [Allied Climate Partners platform](https://www.reuters.com/sustainability/sustainable-finance-reporting/cop28-donors-join-ifc-lure-11-bln-climate-cash-2023-12-01/). Using philanthropic capital from donors, including Three Cairns Group and [Bezos Earth Fund](https://www.prnewswire.com/news-releases/allied-climate-partners-launches-to-catalyze-bankable-climate-related-projects-in-emerging-economies-302003275.html), as well as financing from the International Finance Corporation, the platform aims to raise $11 billion in debt and equity to create a pipeline of climate investments in Southeast Asia, Africa, the Caribbean and Central America, and India.

Not to count our whale calves too early, but each of these transactions, if raised, would turn the tide for climate finance in the developing economies — let alone blended finance.

It’s worth noting that big transactions are important not because they are showy or because smaller transactions have less impact — they don’t — but because of the example they set for naysayers resigned to the status quo. Big transactions are a jarring demonstration of why complacency is misplaced; that change is possible in big increments.

Further, as a group of transactions, here’s what sets them apart from the usual. They draw in institutional investors’ capital at a tremendous and desperately needed scale for climate adaptation and mitigation and for achieving the Sustainable Development Goals in lower income countries around the world. They set an example, and hopefully a trend. They each represent efforts to pool the best talents and existing assets of multiple parties into one big go, and not to duplicate each other’s efforts in multiple, smaller structures.

Several of them feature fairly recent entrants to the field, such as the UAE, the Monetary Authority of Singapore, and Allied Climate Partners. Several showcase leadership by philanthropies, which generally have not participated in blended finance in developing economies at anywhere near the scale of development banks and donor agencies.

All of these transactions are climate-related, signaling the awareness of private investors that climate change is central to their business models.

Was this a one-time burst of action or will we keep seeing large-scale collaboration and capital mobilization? I’m personally hoping for more whales, which have, up to now, been rare among the many forms of life in the blended finance ecosystem.

When a pod of whales swims by, it’s worth putting down the binoculars to witness the moment in full color. That just happened in our world of blended finance.