impact investment summit

The Summit includes a community of 350 impact makers who come together to connect, catalyse and accelerate the ecosystem. Past speakers include Jed Emerson, BrianTrelstad, Wayne Silby, Megan Starr, Joy Anderson, Jyoti Aggarwala, Abigail Noble, Amit Bouri, Stephanie Cohn Rupp, David Batstone, Beau Seil, and tens of other international luminaries in the impact investing space.

Our CEO Joan Larrea and Design Funding Manager Adhiti Gupta will be at the summit. 

Joan will be speaking on Nov. 13 from 12:00 - 1:00PM, on the panel: __Outsized Impact: Boosting Catalytic Capital to Grow the Market__

Adhiti will be speaking on Nov. 14 from 2:15 - 4:15PM, on the panel: __DEEP DIVE - Investing at Scale in South East Asia: Women, Girls, Influence and Capital
__

See the full program [here](http://www.impactinvestmentsummit.com/program).

Impact Investment Summit 2019

This fall on September 24th we are [launching](https://www.convergence.finance/news-and-events/events/5urXmjrQcNJUMM8NV3Kyjp/view) the 3rd edition of our keystone report: The State of Blended Finance 2019. The State of Blended Finance 2019 provides an updated analysis of the blended finance market based on Convergence’s continuous data and intelligence collection efforts as well as input from our partners and members.

This report builds on our previous reports from [2017](https://www.convergence.finance/resource/1qdtFkf5Fq86S4u8U4G8YU/view) and [2018](https://www.convergence.finance/resource/7LEqTu0YeceaQugSWaSKSk/view).

This webinar will review the report's findings, including impact, blending approaches, sectors, and regions. The webinar will also highlight emerging trends and themes as well as reflect on progress towards ‘better blending’.

Webinar: The State of Blended Finance 2019

This webinar will review findings from the State of Blended finance 2019, including impact, blending approaches, sectors, and regions. The webinar will also highlight emerging trends and themes as well as reflect on progress towards ‘better blending’.

The official Africa launch of our 2019 State of Blended Finance Report will be in Nairobi, Kenya on Thursday, October 3, 2019. 

The 2019 State of Blended Finance Report uses Convergence data to analyze the global blended finance market, including the most active funders and investors, sectors attracting the most financing, as well as the commonly utilized blending approaches.

__Agenda:__

9:00 a.m. Welcome and Opening Remarks

9:15 a.m. Keynote Address 

9:30 a.m. Report Highlights

9:45 a.m. Official Africa launch

10:00 a.m. Refreshments

10:30 a.m. Lecture on Blended Finance with Strathmore Business School

12:30 p.m. - 1:00 p.m. Light Lunch

*
Kindly RSVP no later than September 27, 2019 to reserve a place. Limited spaces available.*




State of Blended Finance 2019 Africa Launch

The official Africa launch of Convergence's annual keystone report, the State of Blended Finance 2019.

For blended finance to make a material difference towards the Sustainable Development Goals, diverse stakeholders such as commercial investors, development agencies, impact investors, philanthropic foundations, and development finance institutions, must develop a strong understanding of both the theory and practice behind this collaborative approach. 

As the global network for blended finance, Convergence has unique insights on each stakeholder and the various factors that unlock their participation. In designing this training program, we have leveraged our experience, data, and network to create a practical and actionable blended finance training curriculum.

## Program Structure

The one-day training will include presentations, lectures and case studies by Convergence and third-party facilitators. The training will be interactive and directly engage and involve participants in the learning process.

The modules and agenda are designed to enable participants to uncover answers to the following questions:

- What is blended finance and how can it be applied strategically?
- What does the blended finance ecosystem look like? Who are the various participants and what is their level of activity?
- What are the key components of a blended finance transaction?
- What are the various financial instruments that are commonly observed in blended finance structures?
- How can development capital providers and private investors work together in order to create financial transactions that reflect each other’s criteria?
- What are some instructive examples of transactions that have successfully adopted this approach to crowd-in private capital for development?

## Who should attend?

This training has been created for program and operational staff at commercial investment firms, development agencies, impact investing organizations, philanthropic foundations, and development finance institutions/multi-lateral development banks.

The training will provide participants with an intermediate understanding of blended finance. It is recommended that participants already have a basic knowledge of the topic. Following the training, participants will have a working knowledge of how to make sense of and implement blended finance transactions and frameworks within their respective organizations

## Information & Registration

Cost of attendance is __$2000__ per person. Complimentary ticket(s) are available for Convergence members who have registered for an annual membership. The training has limited space to ensure a personal, intensive and practice-driven learning experience. __Please contact aakif.merchant@convergence.finance to register or if you require any additional information.__


Convergence Blended Finance Training

Agenda

Join us in Amsterdam for a one-day training on blended finance that will include presentations, lectures and case studies by Convergence and third-party facilitators. The training will be interactive and directly engage and involve participants in the learning process.

Blended finance training in Washington, DC. 

This fall we're launching the 3rd edition of our keystone report: The State of Blended Finance 2019.

The State of Blended Finance 2019 provides an updated analysis of the blended finance market based on Convergence’s continuous data and intelligence collection efforts as well as input from our partners and members. The 2019 report will also outline key blended finance trends and developments in the past year.

This report builds on our previous reports from [2017](https://www.convergence.finance/resource/1qdtFkf5Fq86S4u8U4G8YU/view) and [2018](https://www.convergence.finance/resource/7LEqTu0YeceaQugSWaSKSk/view).

Please join us in Amsterdam on __Tuesday, October 1__ from __8:30-10:00am__. The morning will include a discussion of blended finance trends and activities, followed by a networking reception. Breakfast and refreshments will be served.

The State of Blended Finance 2019: Europe Launch

The official Europe launch of Convergence's annual keystone report, the State of Blended Finance 2019.

This fall we're launching the 3rd edition of our keystone report: The State of Blended Finance 2019.

The State of Blended Finance 2019 provides an updated analysis of the blended finance market based on Convergence’s continuous data and intelligence collection efforts as well as input from our partners and members. The 2019 report will also outline key blended finance trends and developments in the past year.

This report builds on our previous reports from [2017](https://www.convergence.finance/resource/1qdtFkf5Fq86S4u8U4G8YU/view) and [2018](https://www.convergence.finance/resource/7LEqTu0YeceaQugSWaSKSk/view).

Please join us in New York on Tuesday, September 24 from 8:00-10:30am. The morning will include a discussion of blended finance trends and activities, followed by a networking reception. Breakfast and refreshments will be served.

The State of Blended Finance 2019: New York Launch

 
### Overview
There is a large capital bottleneck to make the Sustainable Development Goals viable. In a context of global uncertainties, impact projects face major funding difficulties, making new impact investing approaches necessary. Blended Finance has the potential to create solutions to these challenges in an innovative way, enabling private, public, and philanthropic actors to catalyze strategic and sustainable solutions for social and environmental transformation.

In this exclusive event, Din4mo, in partnership with Convergence and Invest Social, will present a blended finance workshop, during which you will learn how your organization can use  blended finance strategies to invest in impact.


### Program Structure

The one-day event will be split into a [morning session](https://www.sympla.com.br/1-seminario-sobre-blended-finance-do-brasil-manha__573198?lang=en), open to all, and an [afternoon session](https://www.sympla.com.br/1-workshop-sobre-blended-finance-do-brasil-tarde__573205), open to ticket holders. The morning session will provide an overview of blended finance, and will also include panel discussions with Din4mo, IFC, Boticario Group Foundation, and other confirmed speakers. The afternoon session will be a more in-depth workshop, incorporating case studies, and engaging participants in the learning process.


The modules and agenda are designed to enable participants to uncover answers to the following questions, in the context of Brazil and Latin America & the Caribbean:


- What is blended finance and how can it be deployed strategically?
- What does the blended finance ecosystem look like?
- Who are the various participants and what is their level of activity?
- What are the key components of a blended finance transaction?
- What are the various financial instruments that are commonly observed in blended finance structures?
- How can development capital providers and private investors work together in order to create financial transactions that reflect each other’s criteria?
- What are some instructive examples of transactions that have successfully adopted this approach to crowd-in private capital for development?


### Information & Registration 
The morning session is free of cost and open to all. The afternoon session will have a cost of R$930. The event has limited space to ensure a personal, intensive, and practice-driven learning experience. Please follow the links provided to register, or reach out to support@convergence.finance if you require any additional information.




Blended finance seminar with Din4mo and InvestSocial

Agenda Blended Finance Seminar in Brazil v1[2] - Read-Only

In this exclusive event, Din4mo, in partnership with Convergence and Invest Social, will present a deepening workshop on the theme, during which you will learn how your organization can use and benefit from blended finance strategies, and investing in impact.



Dinamo Blended Finance Seminar in São Paulo

From August 28 to 30, Convergence, the Social Finance Academy, and the University of Zurich Center for Sustainable Finance and Private Wealth (CSP) will organize a Blended Finance executive program with support from the Swiss Agency for Development and Cooperation (SDC). The program is targeted at development agencies, public or multilateral organizations and foundations with a focus on international development. Eager to learn how to use public funds to attract private investment for high-impact enterprises addressing the SDGs? Click [here](http://www.finance-weiterbildung.uzh.ch/static/csp-registration/resources/iibf_flyer_zurich_2019.pdf) to learn more about the program.

 Impact investment & blended finance executive program

IIBF Flyer Zurich19

Join us in Switzerland for a blended finance training organized by Convergence, the Social Finance Academy, and the University of Zurich Center for Sustainable Finance and Private Wealth (CSP).

Have you heard about blended finance? Do you know how it could benefit your proposals? Do you know what the future holds for blended finance and how that will affect international development practitioners? If your answer to any of these questions is “no,” then this webinar is for you! This webinar is geared towards practitioners who are well-versed in blended finance practices as well as those who are just learning about its potential.

On July 25 at 11am EST, representatives from MEDA, Convergence, FinDev Canada and the Blended Finance Taskforce will come together to paint the picture of Blended Finance in the world of international development.

International Development and the New Terrain of Blended Finance

Blended Finance Ad - ENG & FR

**REGISTRATION IS CLOSED

The United Nations Capital Development Fund (UNCDF), the Organisation for Economic Co-operation and Development (OECD), and the Governments of the Republic of Malawi and the Kingdom of the Netherlands are pleased to invite you to the launch of the report ‘Blended Finance in the Least Developed Countries 2019’. The launch event takes place on the sidelines of the High-level Political Forum.

The report being launched, the second in a collaboration between the UNCDF and OECD, outlines the latest trends in blended finance approaches in LDCs. It updates the previous 2018 report with the latest available data from the OECD, which now cover the six years from 2012 through 2017. It also features seven guest pieces by practitioners and experts working in the blended finance space, which showcase the opportunities and challenges of applying blended finance solutions in LDCs. The report concludes with a review of the next steps for the blended finance and development communities, and flags some emerging issues revealed in the report.

LAUNCH OF REPORT: “Blended Finance in the Least Developed Countries 2019”

INVITATION

USAID recently launched a new and innovative partnership opportunity that seeks to address one of the biggest challenges we face in the education sector — the education financing gap. By 2030 there will be a $1.8 trillion gap in financing for education in low- and middle-income countries, and the majority of this gap must be made up through domestic resource mobilization and expanded private sector investment. There is both a huge need and a tremendous opportunity for private investment in the education sector in emerging markets.

This new partnership opportunity — an Addendum to the Global Development Alliance (GDA)
Annual Program Statement (APS) — is calling for Concept Papers that propose activities that will stimulate financing and innovation in the education sector while also advancing the priorities of USAID’s 2018 Education Policy in selected Sub-Saharan African countries. During this webinar , you will hear learn from USAID leadership and experts in the field of education finance about the following:

1. Why and how USAID is prioritizing private sector engagement and investment, and how this new focus aligns with USAID’s policies and objectives in international education.
2. What USAID is looking for in this new partnership opportunity.
3. The process, timeline, and requirements for submitting a concept paper.
4. Answers to any and all questions you may have about this new partnership opportunity.

Webinar: USAID’s new Blended Finance for Education partnership opportunity

Convergence & [ADFIAP](https://www.adfiap.org/) are pleased to invite you to a networking reception in Manila, Philippines on July 1 from 5:30pm to 7:30pm.

This event is an opportunity to meet and network with like-minded professionals who are interested in blended finance and private sector engagement.

The reception will follow ADFIAP’s Blended Finance for Sustainable Development Forum. Please note you do not need to be registered for the forum to attend this networking event.


Blended finance networking reception co-hosted with ADFIAP

This event is an opportunity to meet and network with like-minded professionals who are interested in blended finance and private sector engagement.

BNP Paribas is one of the largest banks in the world, operational in over 70 countries, with total assets over €2 trillion. The bank is poised to become one of the key commercial players in blended finance.

BNP Paribas’ first blended finance transaction was back in 2017. They were part of a multi-stakeholder group (UN Environment, World Agroforestry Centre (ICRAF), ADM Capital) that conceptualized the [Tropical Landscapes Financing Facility](https://www.convergence.finance/resource/4tO5LULlfeb6QJroKuVHJ1/view) (TLFF), which provides financing for renewable energy and smallholder livelihood projects in Indonesia. In February 2018, TLFF completed its inaugural transaction, a landmark $95 million sustainability bond to finance sustainable natural rubber production across heavily degraded concession areas in the Jambi and East Kalimantan provinces. BNP Paribas was the lead arranger in the deal, leading the financing stage of the project. 

Fast forward to today. BNP Paribas is actively marketing blended finance deals to their clients and have 8-10 blended finance projects in the pipeline that target various countries, including Indonesia, Vietnam, India, the Ivory Coast, and countries in Eastern Europe. 

We spoke to Pierre Rousseau, Strategic Advisor Sustainable Business at BNP Paribas, about the challenges BNP Paribas encountered with TLFF and what they learned, the value BNP Paribas sees in blended finance, and what he wants to see from public and philanthropic investors. 

## What challenges did BNP Paribas encounter with the TLFF? 

First, these deals are complex. We exchanged over 11,000 emails to make the TLFF a reality. We’re talking about a $100 million project, so this type of transaction at this scale, with this many actors, took a lot of time and effort. We did a proof of concept, funded by Convergence’s [Design Funding](https://www.convergence.finance/design-funding), but many things we expected to happen in a certain way didn’t, because working in an emerging market there were just more unexpected issues, whether they were political, or physical like storms, or something else. In the end we struggled a bit. 

## Can you elaborate and also tell us about any important learnings?

One of the first things we learned was that it’s very important when we create a commercial facility like this that we create a grant facility next to it. A grant facility that allows us to get funding from philanthropy or government to finance the technical support, the control of the environmental and social conditions that we have put in place, and to measure the impact. Capital from government and philanthropy is also important when it comes to funding the concept note and pilot, which are critical elements for success that cannot come from the commercial side.  

The second thing we learned was the challenge of integrating small holders. If you are in agriculture, 20-30% of the production comes from small holders. So, to integrate the small holders into a blended deal, the financing you provide to your project must also be taken into account either by a microfinance institution or a local bank. That’s very challenging, you need people on the ground to make that happen. 

Finally, when we wanted to measure the impact we relied on NGOs, but that wasn’t working because they were doing it manually and were not consistent. We realized that we needed big data. If we want to be serious about launching projects of this size, we need to have all the information in order to measure the impact. On top of that we need data that is correct, clean, not manipulated, which will create trust and transparency, which is critical for blended finance. When you mix private, public, philanthropic money you need to be fully transparent and this is very difficult to achieve. 

## So, despite these challenges BNP Paribas has decided to pursue more blended finance projects. Why?

We have clients that are investors and on the other side corporates, who want solutions that help them integrate environmental and social aspects into their business. So, we try to meet our client’s needs and blended finance is one of the interesting ways we’ve found to solve their problems. This is where we can satisfy the offtaker, and the investor, and the small holders because we put them out of poverty, so we can check all the boxes. It’s the best solution we have found so far, to achieve what we want to achieve, in terms of climate change, biodiversity, inequality etc. Maybe tomorrow there will be a better solution and I’m more than happy to switch to that, but today this is one of the best solutions to finance the transformation of some of our clients. 

Today we have identified 8-10 blended finance projects that we are working on, primarily in energy and agribusiness. We are systematically approaching our clients with the blended finance methodology that we have put in place. And there’s a real appetite for it. We only started a few months ago and we have identified 60 leads with corporates, who are interested in acting as offtakers in a deal. That’s critical because whenever we talk about energy or agribusiness, in the end you always need an offtaker, someone to buy the goods. So, this is what we are pushing now. 

## Why do you think there is so much interest? 

We’re solving a problem for them by facilitating the development of these projects. 

Let me clarify who the investors are in deals like TLFF’s sustainability bond. Because we derisk and upgrade the rating through an international agency or public money, our investors in these blended deals are pension funds, insurance companies, sovereign funds, and private banks and specialized banks looking for impact. What attracts them is that there is an offtake agreement, that there’s a big name doing the offtake (Michelin), and that part of the money is guaranteed by public money and the first loss is taken by international agencies. It’s also the fact that the sponsor of the offtaker is also investing in the project. So, we’re aligning their incentives, which makes it very difficult for a client to say no.

Of course, yesterday I had a client tell me this is too complicated, I want something simpler. But this was a private company, which means they have additional means to finance themselves through their own balance sheets. Between listed companies and private companies, it’s easier for the private company to implement the solutions they would like to have into their own balance sheet. But for the rest, if you want to integrate the cost of transforming your business model to one that is more socially and environmentally responsible, you will impact your pricing. So that’s why blended finance is interesting for them, because they can do this transformation without affecting their balance sheet. 

## Speaking to the development agencies in the world, large foundations, and non-profits that want these projects to happen, what is your advice to them if they want organizations like yours and your clients on the commercial side to participate in these transactions?

What we need is to derisk. We need [guarantees](https://www.convergence.finance/news-and-events/news/5sx7ivKz7eNwZBlLNRfN87/view). Co-investing is good, it will improve the cost of funding, but it doesn’t derisk the transaction. We‘re currently trying to work with the DFIs, but there are challenges, because they are still too public project-oriented and not private project-oriented enough, so the methodology is not aligned, but we know each other, so I hope we’ll manage to do something together soon. 

## What would you tell other commercial players who may be interested in entering the blended finance space?

They can join us, under one condition. They need to accept the way we operate, because it took us a long time and much effort to get to where we are. We are one of the largest banks in the world, so we do believe that the way we operate is aligned with regulatory norms and what the society expects from us, so we don’t see any issues. In the future projects, hopefully you’ll see other banks joining us. 



We spoke to Pierre Rousseau about the value BNP Paribas sees in blended finance and what he wants to see from public and philanthropic investors. 

Pierre Rousseau of BNP Paribas talks blended finance 

Member spotlight with Pierre Rousseau of BNP Paribas

There has been no shortage of new research on blended finance over the past two months, ranging from evaluating impact and innovative guarantees, to new forms of concessional capital. At Convergence, we’re constantly on the lookout for new literature to add to our [Resources](https://www.convergence.finance/resource) page, where we’ve curated the most up to date blended finance knowledge, both by Convergence and by organizations in our network. 

Here, we’ve highlighted some key takeaways from the new research produced on blended finance this autumn:

## 1) Evaluating Impact

Comprehensive impact measurement has increasingly been recognized as a central priority for many in the blended finance community. Yet, data and transparency in impact performance continue to be a key challenge. 

In [Evaluating Impact Performance](https://thegiin.org/research/publication/evaluating-impact-performance), the Global Impact Investing Network (GIIN) emphasizes the need for standardized metrics for measuring and comparing impact within sectors, and focuses on impact in two specific development areas: [clean energy](https://www.convergence.finance/resource/5DjskpPA0ABpxGibd038Fn/view) and [access to housing](https://www.convergence.finance/resource/5WSmmWrEBe0X0Doz4VY0JX/view). The GIIN finds that context and nuance is critical to comparing impact results in a meaningful way, and emphasizes the importance of sector-specific metrics. For example, many of the metrics used in the housing report (e.g., number of units of new housing) were entirely different than those in the energy report  (e.g., energy savings per product sold). Convergence has [similarly found](https://www.convergence.finance/news-and-events/news/4mzPEgrlPWdu64iZvkKRei/view) that the majority of metrics used in blended finance transactions are specific to the underlying activity(ies) financed. 

Meanwhile, Development Initiatives’ report, [How blended finance reaches the poorest people](https://www.convergence.finance/resource/yGlGgOlyvIcsfPzcWKbMw/view), looks at the impact of blended finance in aggregate and seeks to understand whether blended finance is reaching the hardest to reach populations. The report highlights that while the blended finance market is growing, only a small proportion takes place in the poorest and most vulnerable countries. Convergence (“[The State of Blended Finance 2019](https://www.convergence.finance/resource/13VZmRUtiK96hqAvUPk4rt/view)”), the United Nations Capital Development Fund ( “[Blended Finance and the Least Developed Countries](https://www.convergence.finance/resource/18Z4yOOEBY5JFDHQAKyDpH/view)”), and the OECD (“[Blended Finance Funds and Facilities 2018 Survey Results](https://www.convergence.finance/resource/23R5uOpgD9Api08k8QK1Xk/view)”) have all reported similar findings. Development Initiatives ultimately concludes that more data is needed to adequately assess the anticipated and actual impact of blended finance on these populations, including on (i) the quality of investments, (ii) key intended and actual beneficiaries, (iii) and the systematic, long-term effects of blended finance. 

## 2) Innovative guarantees

There has been growing attention on the strategic use of guarantees in blended finance to mobilize additional sources of commercial finance. Although not a new instrument, guarantees have increasingly been recognized for their ability to efficiently leverage private sector capital as well as facilitate local currency investments. 

As highlighted by the CSIS report, [Innovations in Guarantees for Development](https://www.convergence.finance/resource/7kJbWezOt1eyDmEGTyfqXj/view), guarantees offer several benefits to investors and project sponsors, including i) reducing the cost of capital by transferring project risks, ii) facilitating project implementation, and iii) helping to develop local capital markets. While MDBs and DFIs have been the most common provider of guarantees, a central recommendation of the report is the need to create and support specialized guarantee providers to help develop local capital markets and scale up investments. 

Our latest case study focuses on one such example. The case study on [Quantum Terminals’ Credit-Enhanced Corporate Bond](https://www.convergence.finance/resource/3Zf0dQHdBUgKcmtdStMRxA/view) showcases how GuarantCo, a specialized guarantee provider, can support companies in emerging markets to raise local currency financing. GuarantCo supported Quantum Terminals, a local fuel and energy infrastructure developer in Ghana, to raise local currency financing from domestic institutional investors through the provision of a partial (75%) guarantee. The case study demonstrates how guarantees can play a role in strengthening domestic markets by displacing the need for hard currency financing and increasing the pipeline of bankable projects. 

## 3) New forms of concessional capital

Finally, we are also seeing a proliferation in the types of concessional capital used in blended finance transactions. While concessional capital providers have traditionally deployed grants, we are increasingly seeing the public and philanthropic sectors turn towards more nuanced instruments to better leverage private financing.

In the [State of Blended Finance 2019](https://www.convergence.finance/resource/13VZmRUtiK96hqAvUPk4rt/view), we noted that concessional capital providers are becoming more sophisticated in their strategies to engage the private sector in sustainable development. The IFC’s [latest report](https://www.convergence.finance/resource/BMcWTC9pSiMje148pZDDO/view) on blended concessional finance investigates the rise of one of these strategic approaches: the use of “returnable capital” from donor governments. This new model departs from traditional grant models in that the principal and interest, if any, are repaid. This gives donor governments the potential to redeploy funds, thereby increasing the total resources available for development activities. 

Ultimately, concessional capital comes in many forms, and varies depending on the type of provider.  For example, while returnable capital is increasingly used by donor governments, DFIs use a variety of different instruments to provide concessional capital to private sector clients. This is examined by the DFI Working Group in its [October publication](https://www.convergence.finance/resource/6o8IH6vpQytSGRSYEcUcb8/view), which finds that DFIs most commonly deploy senior debt, equity, and grants amongst other instruments. 

## Check out our Resources page 

This blog summarizes just a few publications that have come from the blended finance community in the last few months. For more of the latest research on blended finance, check out our [Resources](https://www.convergence.finance/resource) page.


In this blog, we’ve highlighted some key takeaways from the new research produced on blended finance this autumn

New blended finance research

Latest blended finance research circles around three themes

*Toronto, November 12, 2019* – Today, we announce that the Australian Government and Convergence have partnered to invest AU$3.5 million in blended finance to meet development challenges in the Indo-Pacific region.

The $3.5 million will be used to create a [design funding](https://www.convergence.finance/design-funding) window for grants to early stage blended finance solutions, over a three-year period.
     
The Indo-Pacific Design Funding Window focuses on supporting solutions that aim to attract private investment into three focus areas: sustainable and resilient infrastructure, sustainable agriculture and food security, and gender equality. Approximately five to eight grants will be awarded in the three-year period, in an amount up to AU$490,000 for each grant. In the first phase, the funding window will focus on sustainable and resilient infrastructure, followed by the other focus areas.
     
Blended finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in developing countries for sustainable development.
     
By supporting innovative blended finance solutions to get off the ground, the Australian government will draw institutional investors to critical development areas in the Indo-Pacific region, such as infrastructure, gender equality, and agriculture, and ultimately help drive sustainable development in the region. The AU$3.5 million window is expected to catalyze an exponential amount of capital from private, public, and philanthropic investors. 
     
There is no shortage of private capital in, and outside, the Indo-Pacific region. The region has been the fastest-growing asset management market globally in the past five years, accounting for 45% of global inflows over the period, with assets under management at US$16 trillion in 2017. At the same time, the region is home to over 740 million people who still live in extreme poverty. 

“This is the latest example of the Australian government’s leadership in blended finance in the region, where it continues to be an important blended finance champion and market builder,” says Joan Larrea, CEO of Convergence. “We are grateful for this partnership, which will be the first step in our strategy to greatly scale our activities in the region and bring to life more effective blended finance vehicles that drive private capital to places that need it most.”
     
The new window is currently accepting applications, organizations are encouraged to apply [here](https://www.convergence.finance/design-funding).

__About Convergence__

Convergence is the global network for blended finance. We generate blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence has an impressive track record of supporting early-stage blended finance solutions that will attract private sector funding at scale and make long-term impact. Now in its fourth year of operation, Convergence’s existing [Design Funding ](https://www.convergence.finance/design-funding)Facility, which is funded by the Government of Canada, is delivering strong results. It has awarded over US$6 million in funding to 18 solutions, which have catalyzed over US$400 million in capital for critical development sectors.  

__Media Contact__

Sijia Yi

Communications Lead

Tel.: +1 647-573-5993

sijia.yi@convergence.finance



The $3.5 million will be used to create a design funding window for grants to early stage blended finance solutions, over a three-year period.

DFAT & Convergence launch AU$3.5 million funding window

Australian Government & Convergence partner on AU$3.5 million blended finance funding window

*Toronto, 11 November, 2019* – Today, [RS Group](http://www.rsgroup.asia/), a Hong Kong family office focused on sustainability, and Convergence have launched a US$3 million [design funding](https://www.convergence.finance/design-funding) window for innovative and catalytic blended finance solutions focused on natural capital in Asia. Grants will be awarded in amounts ranging from US$50,000 to US$500,000. 
     
The Asia Natural Capital Design Funding Window (the Window) aims to support practitioners who are finding new ways to enhance and protect the world’s stocks of natural assets, including water, land, soil, air, plants, and animals. The Window will support the design and launch of blended finance solutions focused on natural capital, which attract private investment at scale. These solutions will directly support the United Nations Sustainable Development Goals and could contribute to protecting biodiversity, reducing the degradation of ecosystems (e.g. deforestation), mitigating and adapting to climate change, reducing unsustainable use of land and oceans, and providing a fair and sustainable living to local communities.

Asia’s enormous economic growth in the last few decades has come at a high cost to its environment, leading to deterioration of land, freshwater, and marine ecosystems and exacerbating water and food insecurity and climate vulnerability. Globally, it is estimated that there is a US$200-300 billion gap per year to preserve the world’s last healthy ecosystems. Business as usual will mean irreparable damage to some of our most valuable natural assets.

“This significant funding gap for the preservation of ecosystems is both a challenge and an opportunity for the economy, society, and investors,” says Annie Chen, Founder of RS Group. “Capital investment and behavior change are needed today to ensure we have a chance at survival, before we reach the tipping point and lose any possibility of a ‘tomorrow’. Through supporting the Window, we aim to use our capital to catalyze exponential investment into preserving the ecosystems that sustain our lives, and foster the development of the natural capital space in Asia.”

Blended finance uses catalytic capital, such as grants from private or official sources, to attract commercial capital into products that would traditionally not be considered commercially attractive. By supporting the design of new blended finance solutions targeting natural capital, the Window will draw new investors into this critical, but underfunded development area. The US$3 million window is expected to catalyze an exponential amount of capital from private, public, and philanthropic investors.  

“Based on Convergence’s data, Asia has presented itself as the next frontier for blended finance, with 31% of blended finance transactions targeting Asia in 2016-2018,” says Joan Larrea, CEO of Convergence. “This partnership is another example of the rising use of blended finance in the region to support the Global Goals. We are grateful to RS Group for partnering with us to see how blended finance can advance the field of natural capital in such a critical region.”
     
Knowledge and lessons learned derived from the solutions funded by the Window will also be shared with the wider field, to inform and build the blended finance and natural capital investment ecosystem.

The Window is open to co-funding opportunities. Organizations interested in supporting this window and the design and launch of new blended finance vehicles that aim to catalyze private investment for natural capital are encouraged to contact Convergence at: design.funding@convergence.finance 
 
The Window is currently accepting applications for funding. Practitioners with on the ground presence or partnerships in Asia are encouraged to apply. Apply [here](https://www.convergence.finance/design-funding).

__About Convergence__

Convergence is the global network for blended finance. We generate blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence has an impressive track record of supporting early-stage blended finance solutions that will attract private sector funding at scale and make long-term impact. Now in its fourth year of operation, Convergence’s existing Design Funding Facility, which is funded by the Government of Canada, is delivering strong results. It has awarded over US$6 million in funding to 18 solutions, which have catalyzed over US$400 million in capital for critical development sectors.  

__About RS Group__

RS Group is a mid-sized Hong Kong-based family office.  Our mission is to create a paradigm shift in people’s values and priorities so that economic growth will support, instead of jeopardize, human development and environmental sustainability.  In the face of pressing challenges presented by climate change, we feel even greater urgency to put our capital into protecting “the commons”, and to foster multi-sector collaboration focused on addressing issues relating to climate and the environment in HK and Asia. 

Our portfolio of investments and philanthropic activities are managed with a “Total Portfolio Management” approach, and our value creation is measured on a “blended value” basis across the portfolio.  A report summarizing our mission, history, investment and philanthropic activities can be downloaded [here](http://report.rsgroup.asia/).   

__Media Contact__

Sijia Yi

Communications Lead

Tel.: +1 647-573-5993

sijia.yi@convergence.finance


RS Group and Convergence have launched a US$3 million design funding window for innovative and catalytic blended finance solutions focused on natural capital in Asia. Grants will be awarded in amounts ranging from US$50,000 to US$500,000. 

RS group & Convergence launch US$3 million grant window

RS group & Convergence partner on US$3 million blended finance funding window for natural capital in Asia

Peter Wamicwe, our Associate, Africa, explains minimum concessionality: the process of deciding the minimum amount of concessional capital needed to attract private capital. 

Watch more videos from our #ConvergenceAnswers series [here](https://www.youtube.com/channel/UCG1QV2Lpspj59AnYua2PihQ). 

Peter Wamicwe, our Associate, Africa, explains minimum concessionality: the process of deciding the minimum amount of concessional capital needed to attract private capital. 

What is minimum concessionality?

*Originally published on the [Sustainable Energy for All](https://www.seforall.org/news/blended-finance-a-powerful-tool-for-achieving-sdg7) website. *

*The [Energizing Finance 2019 report](https://www.seforall.org/data-and-evidence/energizing-finance-series/energizing-finance-2019) series highlights a massive shortfall in finance commitments for electricity and clean cooking access in 20 countries with the greatest energy access deficits.*

One of the recommendations presented in [Energizing Finance: Taking the Pulse 2019](https://www.seforall.org/publications/energizing-finance-taking-the-pulse-2019) is for government to “Take the lead in enabling blended finance for energy access.” It goes on to say that “Governments have the ability to secure concessional financing from multilateral and bilateral development partners that can be used to provide risk-tolerant financing to enterprises. This can in turn crowd in more commercial capital from investors.”

Blended finance is a term that gets used a lot in the context of Sustainable Development Goal 7 (SDG7)—affordable, reliable, sustainable and modern energy for all by 2030.

We asked 2019 SEforALL Charrettes participant Ladé Araba, Managing Director for Africa at Convergence Blended Finance, to explain this concept, why it is so crucial to achieving SDG7, and how this form of financing can evolve to help make SDG7 a reality.

__Let’s start with the basics. What does “blended finance” mean?__

Convergence’s definition of blended finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in developing countries towards sustainable development. We see this type of finance as directly targeting the SDGs.

__Why is blended finance so important to achieving the SDGs, particularly SDG7?__

Blended finance can address critical challenges to increasing access to clean and affordable energy. Providing energy access requires considerable capital expenditures in building the infrastructure to support energy supply, as well as on-going operations and maintenance.

For electricity, we know that millions of people live in rural communities with no grid connection. They are widely dispersed with very low levels of density. So, reaching these households is more costly and time consuming. The issue of affordability means project owners can’t charge full cost-recovery prices for the infrastructure, products, and services they deliver. This means that off-grid solutions must seek scale to be economical.

Without natural economies of scale, solutions must be cheap and easy to deploy and affordable credit must be provided to the end-users to facilitate affordability. This is where innovative blended finance vehicles and structures can lend a hand. They can help reduce the cost of capital, lower the cost of access, and attract large sums of financing to seemingly unattractive opportunities.

__Is the idea to catalyze private sector investment in projects by first having development funds committed to that same project?__

Exactly. That development funding is what we call concessional capital and it can come from public or philanthropic sources. We can create more investable opportunities in energy access projects by having concessional capital come into deals earlier when it is most risky, in order to create commercially viable projects, companies, and structures.

In addition, project sponsors and developers can work with partners to create more innovative financial products that are aligned with the commercial mandates of investors. Aligning these products with the existing financial instruments and products that investors are familiar with will help to increase their comfort levels, overcoming barriers to adoption.

![blended finance](//images.ctfassets.net/4cgqlwde6qy0/4wlN3IvEAFiPYizHOIkSgN/df3af445b0957e7805d0e5f0c670f068/blended_finance_.gif)

__What needs to happen for more blended finance to be directed towards SDG7?__

There needs to be a deeper understanding of the various blended finance structuring approaches. Convergence’s database of historical deals and its case studies on specific transactions are a useful starting point. This archive offers an evidence base for effectively structuring new deals and points investors looking to diversify their portfolios towards potential partners.  

__How else is Convergence contributing to the achievement of SDG7?__

Convergence is the global network for blended finance. We generate blended finance, data, intelligence, and deal flow to increase private sector investment in developing countries, in support of the SDGs. One way we contribute to SDG7 is through our [Design Funding](https://www.convergence.finance/design-funding) grant program, which supports the design of innovative blended finance vehicles that aim to attract private capital to global development. Under this program, 39 percent of grants have directly supported the achievement of SDG7. For example, we supported the design of the [Climate Finance Facility](https://www.convergence.finance/design-funding/grant-portfolio/7hiK3ZRA1UgE0WQyIE6Cgo/view), the first “Green Bank” in an emerging market, which is housed within the Development Bank of Southern Africa.

__What other successes have you achieved thus far?__

From our [database](https://www.convergence.finance/blended-finance) of roughly 500 blended finance transactions, our data shows that 162 blended finance deals have been aligned to SDG7 to date, representing over USD 72 billion, with participation from over 500 investors. We have seen these financing flows target projects (37 percent), funds (35 percent), companies (17 percent), facilities (9 percent), and bonds/notes (2 percent). At least half of that financing comes from private investors with commercial mandates, whose participation has been facilitated by concessional capital.

Convergence is presently also supporting capital raises for 32 SDG7-related deals that are seeking USD 2 billion in financing. These transactions have secured about USD 1 billion to-date and we are matching them to our global network of investors to help to close their individual funding gaps.



Our Managing Director for Africa explains blended finance, why it is so crucial to achieving SDG7, and how this form of financing can evolve to help make SDG7 a reality.

Blended finance for SDG 7

Blended finance: a powerful tool for achieving SDG7

Conservation finance is a set of mechanisms for investing in ecosystems, which generates additional, long-term, and more diversified sources of capital. In recent years, Convergence has been seeing growing interest in blended finance for conservation. Because conservation can be a slow and risky business and it can take decades to realize, verify and capitalize on ecosystem benefits, blended finance is one important tool for managing key risks and mobilizing private sector investment in conservation projects. 

Our latest [Data Brief](https://www.convergence.finance/resource/GucIHtU8jyKUePBuz4G5l/view) considers how blended finance approaches have been deployed within conservation finance to date. The [Convergence database](https://www.convergence.finance/blended-finance) has captured 30 blended finance transactions focused on financing conservation projects, which represent aggregate financing of $3.1 billion. To date, blended finance transactions with conservation mandates have largely focused on sustainable agriculture and sustainable forestry / reforestation, followed by land restoration. Other transactions have been focused on aquaculture, ecotourism, sustainable apparel, and water conservation.

Here are a few key findings from our latest Brief:

- Conservation solutions have hit a scalable size: Blended finance transactions for conservation have been more than twice as likely to be $100-250 million in total size, compared to all blended finance transactions captured in Convergence’s database. This reflects, at least in part, the dominance of pooled vehicle structures in this space. Approximately two-thirds of transactions have been blended funds, including those with a wide lens (i.e., focusing on conservation broadly across multiple sectors) as well as those with a narrow lens (i.e., focusing on a specific conservation issue like oceans or sustainable coffee). The larger typical transaction sizes and pooled vehicle structures could indicate strong potential to scale private sector investment in this space.


- Design-stage grants have been key for conservation: Relative to all blended finance transactions, solutions for conservation have been nearly twice as likely to benefit from design-stage grants. It can take time and resources to design finance mechanisms that generate cash flows, establish lawful and equitable land claims, and develop measurable targets. Nonetheless, the most common blended finance archetype in conservation finance has been concessional debt or equity, which appears in 70% of transactions. Concessional capital – including design-stage grants and concessional debt and equity – has been most commonly provided by development agencies and multi-donor funds (44% of commitments).

![Conservation finance](//images.ctfassets.net/4cgqlwde6qy0/1jH6X6YplLf0a0QgP0JVrg/31e919a1a06eaef8ff81a25f52090bf9/Conservation_finance.png)

- Private sector organizations have been key financiers, but also sponsors: Each of the thirty blended finance transaction included in this data brief has mobilized capital from one or more private sector investors, primarily banks and corporates. Public capital is still critical: an equal proportion of commercial investments have been provided by traditional commercial investors (e.g., banks and corporates) and public institutions like MDBs and DFIs. Moreover, the private sector has also played a role as deal sponsor: approximately half of blended finance transactions focused on conservation have been led by the private sector. For example, [Danone](http://www.livelihoods.eu/emmanuel-faber-interview-op2b-coalition/), [Mirova-Althelia](https://www.mirova.com/en/invest/natural-capital), and [Terra Global Capital](http://www.terraglobalcapital.com/) have all been among those at the forefront of piloting blended finance solutions for ecosystem conservation. 

The analysis here demonstrates that blended finance is not new to conservation finance and that there is a growing body of evidence that can be used to refine and scale solutions with demonstrated success. Anecdotally, Convergence sees strong momentum behind conservation finance – among members and the broader community – given its critical role in climate change mitigation and adaptation. 

*Become a [member](https://www.convergence.finance/membership) and read the [full brief](https://www.convergence.finance/resource/GucIHtU8jyKUePBuz4G5l/view).* 




Our latest Data Brief considers how blended finance approaches have been deployed within conservation finance to date. 

Blending for conservation finance

Scaling blended finance solutions for conservation finance

Our Manager Aakif Merchant explains the importance of leverage ratios, which tell us how successful a blended finance transaction has been in terms of crowding in commercial money. 

Watch more videos from our #ConvergenceAnswers series [here](https://www.youtube.com/channel/UCG1QV2Lpspj59AnYua2PihQ). 

Our Senior Associate Aakif Merchant explains the importance of leverage ratios, which tell us how successful a blended finance transaction has been in terms of crowding in commercial money. 

What is leverage in blended finance?

Our Head of Communications Sijia Yi breaks down the difference between impact investing (an investment philosophy), and blended finance (a structuring approach that brings together multiple types of investors).

Watch more videos from our #ConvergenceAnswers series [here](https://www.youtube.com/channel/UCG1QV2Lpspj59AnYua2PihQ). 

Our Head of Communications Sijia Yi breaks down the difference between impact investing (an investment philosophy), and blended finance (a structuring approach that brings together multiple types of investors).

Blended finance vs impact investing

What's the difference between blended finance and impact investing?

The International Finance Corporation (IFC) is the private sector arm of the World Bank Group and one of the largest Development Finance Institutions in the world. They’ve been making [blended finance](https://www.ifc.org/wps/wcm/connect/CORP_EXT_Content/IFC_External_Corporate_Site/Solutions/Products+and+Services/Blended-Finance) transactions happen since the start of the millennium.

In 2017, the World Bank Group launched the [IDA Private Sector Window](https://ida.worldbank.org/financing/ida18-ifc-miga-private-sector-window) (PSW), a $2.5 billion facility focused on catalyzing private investment in IDA countries (the world’s 53 poorest countries) and fragile and conflict-affected states. This has propelled IFC’s blended finance activities to another level, becoming even more established and impactful.

IFC has embraced blended finance as a tool to help them achieve their broader [IFC 3.0  strategy](https://www.ifc.org/wps/wcm/connect/78684d22-f9bb-4218-beac-181a0d30e753/201905-IFC-SBO-FY20-FY22-Gearing-up-to-Deliver-IFC-3-0-at-Scale.pdf?MOD=AJPERES&CVID=mF-.FRI), which aims to reach newer markets in more frontier areas and to focus on climate and gender themes. The blended finance team takes on projects that are earlier-stage than the private sector or IFC’s regular activities would otherwise support – its blended finance activities are able to take on more risk and price at concessional levels most of the time, more than the IFC, other DFIs, or commercial investors can take on.

Convergence spoke to Kruskaia Sierra-Escalante, Senior Manager, Blended Finance at IFC and Martin Spicer, Director, Blended Finance at IFC, on how IFC measures impact, its new transparency practice, its track record of investing in low-income countries, the Small Loan Guarantee Program, and how they see IFC’s role in blended finance evolving in the future. 

## As one of the largest DFIs in the blended finance space, what are some interesting or unexpected challenges you’ve faced in executing blended finance deals?

__Martin:__ I would say one of the things that’s been interesting for me has been the different ways people look at the subsidy and concessionality aspect. There are some, inside and outside IFC, who assume that concessionality alone can create success by attracting more financing or achieving greater development impact. If there’s something free or cheap, people are going to want it. 

In reality, concessionality is a more nuanced solution and “cheap money” is not the only key ingredient that makes a project successful. Ultimately, it’s really in how you structure the blended finance solution to address specific challenges in the market. And not all of the problems are because of the cost of financing. Challenges may also be the perceptions of risk, regulatory barriers or uncertainty, or any number of things. So, one has to think about more than just the level of concessionality as the solution to supporting high-impact projects in developing countries. 

## How important is impact to your investment decisions and how do you measure the impact of your blended finance deals?

__Kruskaia:__ Impact is everything. For us in the blended finance team, the impact we’re looking for is compounded. As a DFI, we’re already focused on impact. When it comes to our blended finance activities, the blended finance team is looking at what else we can do to deepen that impact. For example, IFC might be already lending to banks for on-lending to SMEs, but we’re not seeing as much lending to women-owned SMEs. Through blended finance, we can extend those activities to harder to reach populations or markets. We have the numbers to demonstrate that impact: the anticipated development outcomes for our blended finance activities tend to be significantly higher than for IFC’s regular business-as-usual investments. 

Then, we also see impact in terms of leverage – how much additional DFI and private capital accompanies a blended finance solution. Across different sectors, facilities, and instruments, what we have seen is that every dollar of donor funds that we have deployed in a blended finance transaction tends to leverage about $4 from IFC’s own account, and then another $5 from other co-investors that could be DFIs, but also commercial banks and other private sector investors. 

## How does IFC identify potential transactions for blending?

__Martin:__ I encourage the IFC teams to go out and look for opportunities the way they normally would, especially in non-infrastructure areas, and to identify where the frontier is for that company or project. Think about what the challenges are for growing their business or implementing new projects, and if they really are facing financing challenges, then we think about ways that IFC can provide de-risking instruments or lower-priced debt to support them. That being said, many times the challenges are not financial and require solutions beyond blended finance, maybe regulatory reform is more important or capacity building or maybe the environmental or social aspects of a project will hinder success. 

## Can you give me an example of a specific blended concessional finance deal led by IFC?

__Martin:__ Let me tell you about the [Small Loan Guarantee Program](https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/vwAllDocumentsByUNID_NL/842F7C1877A1458F85258425004DDD92?opendocument) (SLGP), which is a good example of a blended finance structure that has had good uptake and is scalable and replicable. It’s a risk sharing facility that’s supported by first-loss capital from the IDA PSW to help banks increase the size of their lending to SMEs. The risk sharing facility provides partial guarantees to financial institutions to cover a portfolio of loans to SMEs. The first-loss coverage from IDA PSW reduces the risk for IFC, which allows IFC to price the instrument attractively and, therefore, incentivizes banks to do more lending to higher impact projects and entrepreneurs.  

We’ve had a lot of success with the SLGP – in Haiti, Cambodia, and in eight countries in Africa. The facility offers a standardized product,  which helps in terms of deployment: financial institutions understand the product and its benefits. That’s one of the main complaints we hear from the private sector about the blended finance space: that the structures are too bespoke and complex. Now we’ve gone back and increased the amount of first-loss available because the uptake has been so good and we are trying to replicate the solution with other donors. 

## Convergence’s data finds that the majority of blended finance transactions have targeted middle- and lower-middle income countries, how does IFC think about / prioritize blending in the [Least Developed Country (LDC)](https://www.ifc.org/wps/wcm/connect/d23e37f2-21cb-4bf8-b272-f65f1efeb98c/20181105-EMCompass-Note-60-Blended-Finance.pdf?MOD=AJPERES&CVID=mrBXnSm) context?

__Kruskaia:__ Before, we didn’t have sufficient concessional resources to operate in the LDCs, because the majority of the funds under management were earmarked for climate, specifically climate mitigation, mostly in middle-income countries. With IDA PSW resources becoming available, a greater percentage of our portfolio is in lower-middle income (more than 30%) and low-income countries (more than 40%). A lot of the current data still only captures the historical portfolio of our blended finance operations, but we expect to see those numbers change over the next few years. We already see that in IFC’s numbers and we will only grow our activities in those countries from here. 

## How do you see IFC’s engagement / role in blended finance evolving in the future?

__Kruskaia:__ Within IFC, blended finance used to be a niche product that was used in specific areas, typically according to the agreement with contributors, and primarily for piloting innovative projects. As we have evolved, blended finance has become a more established solution that can be used strategically to support IFC’s priorities. For example, more availability of concessional funds for low-income countries means that we, in the blended finance team, can talk to more teams across IFC and discuss potential structuring solutions for their transactions much earlier. While before it was more reactive, we can now be more strategic and have more solid processes in place. This also means we can further our leadership role and share our experiences and learnings to date with other DFIs.

__Martin:__ Building on that, we expect to continue our leadership role in working with other DFIs, practitioners, donors – to continue to improve blended finance practices. For example, we will continue to lead initiatives like the development and implementation of the enhanced [DFI principles for blended concessional finance for private sector operations](https://www.ifc.org/wps/wcm/connect/73a2918d-5c46-42ef-af31-5199adea17c0/DFI+Blended+Concessional+Finance++Working+Group+Joint+Report+%28October++2019%29+.pdf?MOD=AJPERES) and the joint DFI reports. We can’t just stop where we are today, we’re encouraging better [governance](https://www.ifc.org/wps/wcm/connect/6b593cec-3175-4448-9748-d38cfac0df37/EMCompass-Note-66-Blended-Concessional-Finance.pdf?MOD=AJPERES&CVID=mHZUJnk) and more disclosure among the community. We need to ensure that we’re not using blended finance improperly in the sense of unhealthy competition among concessional capital providers, but rather focusing on minimum concessionality to have more impact and support more projects. Overall, we see both our internal and external roles evolving and growing, and that includes the partnership with Convergence. 

## Can you tell us more about IFC’s new [transparency practice](https://www.devex.com/news/opinion-in-blended-finance-transparency-and-rigor-must-rule-the-day-95776) around the IDA PSW subsidies? How did that come to be and what impact do you think it will have on the blended finance space? 

__Kruskaia:__ IFC has been disclosing to our Board estimated subsidy figures for blended finance projects across all sources and facilities since 2013.  Externally, we have also been disclosing the use, source and amount of blended finance at the project level.  Starting with projects mandated this month, we are enhancing our public disclosure practices to include the estimated subsidy as a percentage of total project cost – both for PSW and all other blended finance facilities.  Transparency is key in ensuring public confidence in the use of blended concessional finance solutions, and IFC has been one step ahead in disclosures to our Board and externally, and with this enhanced practice we are committing to go one step further.  

We hope other implementers of blended finance will follow suit, and we are already in discussions with some to share approaches and experiences.  Donors and other stakeholders can support these efforts by asking for the same information to become publicly available from others and requiring the application of the DFI enhanced principles for blended concessional finance when making resources available for private sector operations.  



An interview with Martin Spicer and Kruskaia Sierra-Escalante of IFC on how IFC measures impact, its new transparency practice, its track record of investing in low-income countries

How IFC blends

Member spotlight with Martin Spicer and Kruskaia Sierra-Escalante of IFC

Our Manager Justice Johnston discusses the two levels of impact for blended finance: the impact of the structuring approach itself, and the impact of the underlying activities being financed.

Watch more videos from our #ConvergenceAnswers series [here](https://www.youtube.com/channel/UCG1QV2Lpspj59AnYua2PihQ). 

Our Manager Justice Johnston discusses the two levels of impact for blended finance: the impact of the structuring approach itself, and the impact of the underlying activities being financed.

Measuring blended finance impact

How do you measure impact in blended finance?

Our Associate Director Safia Gulamani explains how blended finance instruments can improve risk-return profiles to attract capital to difficult sectors and under-served markets. 

Watch more videos from our #ConvergenceAnswers series [here](https://www.youtube.com/channel/UCG1QV2Lpspj59AnYua2PihQ). 

How blended finance instruments can improve risk-return profiles to attract capital to difficult sectors and under-served markets. 