Convergence Eventbrite

__Thursday, July 30th, 9am – 11:30am SGT (GMT+8)__

[Register](https://attendee.gotowebinar.com/register/5746699085648771340 "Register for this event")

---


Blending with Design and Preparation-stage Grants is a 2.5-hour (150 minutes) interactive seminar that will cover:
- How project preparation grants and design funding are used to mobilize additional private sector financing
- The potential of early-stage grants to accelerate the blended finance market
- Case studies on programs that leverage preparation-stage grants and design funding to build a pipeline of investable projects/funds/companies 
- Recommendations to practitioners on deploying these grants effectively 

Blended finance transactions can be complex, time intensive, and highly costly to structure and launch. Preparation grants support technical studies to prove a project’s viability. Design funding is used for feasibility studies, to assess the bankability of a transaction, or proof of concept, to complete design and structuring activities to launch a transaction. Both types of grants are instrumental in building the pipeline of investable opportunities.

This is the third seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments". Even if you missed previous seminars, you are welcome to register.

*The training has limited space to ensure a personal, intensive and practice-driven learning experience. All participants will receive the presentation slides afterwards. We recommend that no more than two representatives from each organization attend.*


Blending with Design and Preparation-stage Grants (Asia/West Coast)

Blending with Design and Preparation-stage Grants is a 2.5-hour (150 minutes) interactive seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments".

Blending with Design & Prep-stage Grants (Asia/West Coast)

__Tuesday, July 28th, 10am – 12:30pm EDT (GMT-4)__

[Register](https://attendee.gotowebinar.com/register/7264903641770206476 "Register for this event")

---


Blending with Design and Preparation-stage Grants is a 2.5-hour (150 minutes) interactive seminar that will cover:
- How project preparation grants and design funding are used to mobilize additional private sector financing
- The potential of early-stage grants to accelerate the blended finance market
- Case studies on programs that leverage preparation-stage grants and design funding to build a pipeline of investable projects/funds/companies 
- Recommendations to practitioners on deploying these grants effectively 

Blended finance transactions can be complex, time intensive, and highly costly to structure and launch. Preparation grants support technical studies to prove a project’s viability. Design funding is used for feasibility studies, to assess the bankability of a transaction, or proof of concept, to complete design and structuring activities to launch a transaction. Both types of grants are instrumental in building the pipeline of investable opportunities.

This is the third seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments". Even if you missed previous seminars, you are welcome to register.

*The training has limited space to ensure a personal, intensive and practice-driven learning experience. All participants will receive the presentation slides afterwards. We recommend that no more than two representatives from each organization attend.*


Blending with Design and Preparation-stage Grants (Europe/East Coast)

Blending with Design & Prep-stage Grants (Europe/East Coast)

__Thursday, June 11th 2020, 9am – 11:30am Singapore time (GMT +8):__

[Register](https://register.gotowebinar.com/register/6008452121213452816 "Register for the event")

---

Blending with Technical Assistance is a 2.5-hour (150 minutes) interactive seminar that will cover:

  - How Technical Assistance is used in blended finance transactions;
  - How Technical Assistance can de-risk investments and strengthen development impact;
  - Case studies and trend analysis on the use of Technical Assistance in blended finance transactions; and
  - Recommendations to practitioners on deploying Technical Assistance efficiently.

Technical Assistance is a versatile development tool that can be deployed to mobilize additional sources of finance for the Sustainable Development Goals (SDGs). The use of grant-funded technical assistance facilities can strengthen commercial viability and developmental impact. Technical Assistance can be vital to support project preparation, project implementation, and the broader business and policy environment.

This is the second seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments". Even if you missed the first seminar (Blending with Guarantees) you are welcome to register.

*The training has limited space to ensure a personal, intensive and practice-driven learning experience. We recommend that no more than 2-3 representatives from each organization attend. Registration is complimentary for members, applying the __discount code__ you received via e-mail. Non-members can register for a fee of $150.*



Blending with Technical Assistance (West Coast/Asia)

Blending with Technical Assistance (West Coast/Asia) is the second seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments".

__Registration closed. This seminar is at full capacity.__


---

Blending with Technical Assistance is a 2.5-hour (150 minutes) interactive seminar that will cover:

  - How Technical Assistance is used in blended finance transactions;
  - How Technical Assistance can de-risk investments and strengthen development impact;
  - Case studies and trend analysis on the use of Technical Assistance in blended finance transactions; and
  - Recommendations to practitioners on deploying Technical Assistance efficiently.

Technical Assistance is a versatile development tool that can be deployed to mobilize additional sources of finance for the Sustainable Development Goals (SDGs). The use of grant-funded technical assistance facilities can strengthen commercial viability and developmental impact. Technical Assistance can be vital to support project preparation, project implementation, and the broader business and policy environment.

This is the second seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments". Even if you missed the first seminar (Blending with Guarantees) you are welcome to register.

*The training has limited space to ensure a personal, intensive and practice-driven learning experience. We recommend that no more than 2-3 representatives from each organization attend. Registration is complimentary for members, applying the __discount code__ you received via e-mail. Non-members can register for a fee of $150.*



Blending with Technical Assistance (America/Europe/Africa)

Blending with Technical Assistance (America/Europe/Africa) is the second seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments".

The world is currently fighting the Covid-19 pandemic and its devastating humanitarian and economic impact. Countries are overwhelmed with the additional burden that the outbreak is imposing on public health systems and national budgets.

The effects of the global crisis will be long-lasting, but the crisis is also an opportunity. The shifts in the global financial system is a chance to set the world on track for a sustainable recovery, and ensure there is financing for sustainable development, for everyone. The private sector has an important role to play, in solid collaboration with the public sector.

The Global Investors for Sustainable Development, [GISD](https://url11.mailanyone.net/v1/?m=1jaYoU-0006pq-4T&i=57e1b682&c=_SN6osRAQuexVInTW4uP5YIr5IJwQ6FLtaKQ_pv8ra2za9D10FOmyQaGuLxd7MQX2voNG75CMRkJGUpcGE64BCK0H-LTNlAyNob2MTKIe5Tm6pXY71hXf6BQnAFNuJeCNcOyDrkh2BVxe1uRScxsYEqeeDmXHmVQ0eK12lx_nwIYxZbCGELRbZy0d4_fguHzU7JJJV2b93Mlqn6dQOHF4jsMETEe2xf56L7XMDzVkQcRc8gHxr_VrvZ4VYjaAIaCEYgxsuFnscggRTfKGPvhdO5eeeGTf2kfPzKawkvOcMEuPAOcJhLGq1IMTJd4dxM9gp9RV6HFa3Kq7P4LlDHHw0mCbMavcR6NjZslSdo0QvWKJATx2vC8RUNZ9ezpLbqFMcDvCyFJZdjQdIIy7Jn9D9-1iZ1w99XGgL_CD5HUsopAknTvAb76ujKVLt_qpwGouWSLHRiDi_SSQ2n-AcFS33jaNoHSsl7T9IXFqSAycquKuuw1bMifSX5xCgb8L58xTf0-Up6Zmn1vEofTjRUdrfgbVwjOS9psPk_YIlAh8gyNdu4xBe-d7WHNwFuACyjscISXq6bZi7B7ULPEIuqN53BNhtdQPHwmmMIPnMDTjueOTUhXTcikioGVxIi2aLZLKrxT9JqThLqK88yy6ZuZiyv5UIXS0vjW7zxOSa8o91vZpT95EpDsurOHsTuvfE8I), is an initiative launched by the UN Secretary-General in 2019, with inspiration from the Swedish alliance SISD (among others). In conjunction with their global digital GISD conference in Stockholm, Sida together with UN DESA is organizing a [global on-line conference](https://www.sida.se/Svenska/aktuellt-och-press/development-talks/inbjudningar/building-back-better/ "Building Back Better") on how to build back better from Covid-19 pandemic through long-term investment in sustainable development. This special Development Talks public session will explore the role of investors in scaling up long-term investment for a sustainable recovery. How can investors, development actors and the UN work together to support reaching the 2030 Agenda, in a post-pandemic world?

With 10 years left to the delivery of the 2030 Agenda with the Global Goals, we are entering a Decade of Action to step up the efforts. Welcome to a virtual call to action, with finance and development leaders in joint action for a more equitable and sustainable world. 

Live stream: [https://www.youtube.com/watch?v=vqyw5W16JEk&feature=youtu.be](https://www.youtube.com/watch?v=vqyw5W16JEk&feature=youtu.be)

Building back better - Finance and development leaders in joint action

In conjunction with their global digital GISD conference in Stockholm, Sida together with UN DESA is organizing a global on-line conference on how to build back better from Covid-19 pandemic through long-term investment in sustainable development. This special Development Talks public session will explore the role of investors in scaling up long-term investment for a sustainable recovery. How can investors, development actors and the UN work together to support reaching the 2030 Agenda, in a post-pandemic world?

Building back better - SIDA together with UN DESA

Blending with Guarantees is a 2.5-hour (150 minutes) interactive seminar that will cover:
- how guarantees are used in blended finance transactions;
- the issues that impact the effectiveness of this financial instrument; 
- case studies and comparisons on the use of guarantees, and 
- recommendations to practitioners on deploying guarantees efficiently. 

The development community utilizes various financing tools, ranging from grants, equity investments and loans, to guarantees and insurance products. Through guarantees on below-market terms, public or philanthropic investors provide credit enhancement to commercial investors. Guarantees offer a compelling opportunity to mobilize private sector investment towards SDG-aligned projects in emerging and frontier markets.

This is the first seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments".

*The training has limited space to ensure a personal, intensive and practice-driven learning experience. We recommend that no more than 2-3 representatives from each organization attend. Registration is complimentary for members. Non-members can register for a fee of $150. *


Blending with Guarantees (Asia time)

Blending with Guarantees (Asia time) is the first seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments".

Blending with Guarantees (America/Europe time)

Blending with Guarantees (America/Europe time) is the first seminar in our four-part seminar series “A Closer Look at Blended Finance Instruments".

Convergence logo official

__Tuesday, May 12th, 10:00am to 11:30pm EST (GMT-4):
__

[Register](https://attendee.gotowebinar.com/register/6683764466012109580 "Register for the event")

---

Convergence and the DFID Impact Programme are pleased to co-host a webinar on Mobilizing Private Investment at Scale in Blended Finance. 

During this 90-minute webinar, participants can expect to hear key findings from Convergence’s latest report, How to Mobilize Private Investment At Scale in Blended Finance, based on consultations with over 20 leading private investors, including commercial banks, asset managers, and institutional investors. Convergence will also cover key trends in private investment in blended finance, top recommendations from investors for scaling blended finance, and case examples of effective blended finance vehicles for mobilizing private investment.

We are excited to welcome Moody’s to this session to discuss their recent report on the use of credit enhancement in blended finance and guest perspectives from the private sector (details forthcoming).

The webinar is designed for the 360 degrees of stakeholders in blended finance, including organizations in developing countries, private investors, fund managers, development agencies and philanthropic foundations.

Mobilizing Private Investment at Scale in Blended Finance

Convergence shares insights and key findings from its latest research report, [How to Mobilize Private Investment At Scale in Blended Finance](https://www.convergence.finance/resource/3cpgfofIUn2QY8rFEV2IFt/view), based on consultations with over 20 leading private investors

Join this webinar with Pierre Rousseau, Strategic Advisor on Sustainable Business, BNP Paribas to learn how the company had a pivotal role in the landmark US$95m Sustainability Bond issued by the [Tropical Landscapes Finance Facility (TLFF)](https://www.convergence.finance/resource/4tO5LULlfeb6QJroKuVHJ1/view "TLFF Inaugural transaction: Corporate sustainability bond for natural rubber production"). The multi-tranche senior secured fixed rate Sustainability Bond will fund PT Royal Lestari Utama (RLU). This joint venture between France's Michelin and Indonesia's Barito Pacific Group, fosters the climate-smart, wildlife-friendly and socially inclusive production of natural rubber on heavily degraded land in Indonesia.

Collaborative Blended Finance Solutions: BNP Paribas in Indonesia

Join this webinar with Pierre Rousseau, Strategic Advisor on Sustainable Business, BNP Paribas to learn how the company had a pivotal role in the landmark US$95m Sustainability Bond issued by the Tropical Landscapes Finance Facility (TLFF).

Collaborative Blended Finance Solutions: BNP Paribas

Continuing our gender lens investing series, learn from other practitioners on how you can invest to address inequalities. The 2X Challenge calls for the G7 and development finance institutions to collectively mobilize $3B USD to invest for women in emerging and frontier economies. The aim of this funding is to provide women with improved access to leadership opportunities, quality employment, finance, enterprise support and products and services that enhance economic participation and access. The webinar will feature an update of the 2X Challenge's achievements by FinDev Canada and case studies by Proparco , FMO, and EIB.

Moderator: Anne-Marie Levesque, Head Gender & Impact, FinDev Canada & Chair, 2X Challenge Working Group

Panelists:

Marion Calloch - Technical Assistance Officer, Proparco

Nicholas Nzioka - Senior Project Officer, European Investment Bank

Corianne van Veen - Sustainable Finance Officer, FMO

CAFIID Webinar “2X Challenge”

Demystifying Blended Finance is a 3-hour interactive workshop designed to offer members and partners a comprehensive understanding of how blended finance can mobilize higher levels of capital for projects in developing counties. The workshop will offer a brief overview of blended finance and trends across the ecosystem, along with a deeper understanding of the financial rationale for using blended finance; and reviewing practical applications of how blended finance structures have been used to capitalize projects in emerging and frontier markets.

The training has limited space to ensure a personal, intensive and practice-driven learning experience. __We recommend that no more than 1-2 representatives from each organization attend.__

Virtual Learning Seminars: Demystifying Blended Finance

Demystifying Blended Finance is a 3-hour interactive workshop designed to offer members and partners a comprehensive understanding of how blended finance can mobilize higher levels of capital for projects in developing counties.

Advancing gender equality is key to achieving the Sustainable Development Goals (SDGs). Through market acceleration, Convergence is committed to provide support to practitioners designing bankable investment structures for building the market, and ultimately catalyzing additional investment to meet __SDG 5–Achieve gender equality and empower all women and girls__.

Earlier in May, Convergence [expanded](https://www.convergence.finance/news-and-events/news/LZqbniwrKBrxQV6hPZWHk/view "Convergence and The Government of Australia Expand Scope of the Indo-Pacific Design Funding Window to Include Gender Equality as a Focus Area") the focus areas of the [Indo-Pacific Design Funding Window](https://www.convergence.finance/design-funding/open-window/indo-pacific-open-window "Indo-Pacific Design Funding Window"), sponsored by the Australian Government, to include gender equality, in addition to resilient and sustainable infrastructure, to accelerate the number of blended transactions in the Indo-Pacific region that aim to make a significant contribution to gender equality outcomes for women and girls. 

## The Why

Based on Convergence data, 24% of blended finance deals align with SDG 5, and 42% of these deals have integrated a comprehensive gender-lens methodology, with a focus on empowering women. The majority (58%) of gender related deals focus partially on gender, with the goal of tracking and monitoring the number of women reached (e.g., by collecting gender-disaggregated metrics). So, we know a minority of gender related deals have a comprehensive *gender focus*, whereas a majority have adopted some aspect of a *gender lens* in their methodology. 

When zooming in on the Indo-Pacific region, we see a steady flow of gender related transactions in recent years, following an uptick in 2013. Based on Convergence’s Historical Deals Database, most of the gender related transactions have focused on microfinance, energy and infrastructure, with Cambodia, Philippines and Indonesia being the most frequently targeted countries. The public sector has emerged as a key financier of blended finance transactions in this region, by participating in more than half of the transactions. A sizeable proportion of these investors are multilateral development banks and development finance institutions. At Convergence, we see an opportunity to drive additional private sector investment in this space.

## The How

Specific to the Indo-Pacific Design Funding Window, Convergence seeks proposals focused on gender equality that are either directly benefiting women and/or provide improved access to, and control over, resources and capital for women and girls. Intended outcomes can be qualitative or quantitative in nature, so long as they are explicitly stated and supported in reason and strategic planning. 

If you consider applying to this Design Funding Window, consider the following questions to help determine the robustness of your proposal: 
- How are potential risks and opportunities related to gender assessed? 
- How will a gender analysis be conducted? What factors will be considered in the gender analysis?
- How will a gender action plan be formulated and implemented?
- What tools or metrics would be used/developed to assess gender outcomes? 
- What are the internal implications of applying a gender lens?

Across all applications, Convergence assesses how gender is considered in the design of the financing structure, the implementation plan, and the monitoring and evaluation. Convergence incorporates a gender lens across the evaluation and selection processes and runs through several considerations when determining the strength of a design funding application. 

As an example, the first grant award under the Indo-Pacific Window was for the design of the Local Utility Project Aggregator by [Allotrope Partners](https://www.convergence.finance/news-and-events/news/2p85wKhuWkS7JGgGs09e9g/view "Convergence Awards Allotrope Partners Feasibility Grant through Indo-Pacific Design Funding Window"), an international clean energy advisory firm specializing in emerging markets and technologies, that committed to leverage its relationships with investors, developers and public officials, to engage with a range of local stakeholders, and conduct a social gender analysis to ensure effective and equitable implementation, throughout the design process of its clean energy vehicle. 

We also have a list of available [resources](https://www.convergence.finance/resource "Convergence | Resource Library") to support you as you think about applying a gender lens to a blended finance vehicle. You can find more information about our eligibility criteria, evaluation criteria and application process for the Indo-Pacific Design Funding Window [__here__](https://www.convergence.finance/design-funding/open-window/indo-pacific-open-window "Convergence | Indo-Pacific Design Funding Window"). 

__The next application deadline is August 10, 2020. If you have questions about whether your financing structure has a sufficient focus on gender equality, fill in this [questionnaire](https://www.convergence.finance/design-funding/open-window/application "Convergence | Indo-Pacific Design Funding Window") and reach out to design.funding@convergence.finance. __

*This blog post, contributed by [Aditi Gupta](https://www.convergence.finance/about/team/3f9TCaaBW1x33qJ4rUvmhB "Adhiti Gupta Manager | Market Acceleration and Design Funding") and [Adi Vashist](https://www.convergence.finance/about/team/7E31Xm8Aa6twslG5szdgax "Adi Vashist | Senior Associate, Market Acceleration and Design Funding") is part of a new series that will look at [gender in the blended finance market](https://www.convergence.finance/news-and-events/news/3q7aGC3DBXf5KiRRDBErYO/view "Convergence | Assessing Gender Lens Investing in Blended Finance"), including key opportunities and challenges for achieving, measuring, and bolstering gender equality in blended finance transactions.*


Through market acceleration, Convergence is providing support to practitioners designing bankable investment structures for building the market, and ultimately catalyzing additional investment to meet Sustainable Development Goal 5 - Gender Equality.

Advancing Gender Equality through the Indo-Pacific Window

Advancing Gender Equality through the Indo-Pacific Design Funding Window

Over the past few years, gender equality has become increasingly incorporated in the investment strategies of impact investors and institutional investors, with its benefits recognized from both a development and business perspective. Convergence has consistently tracked the alignment of blended finance transactions with [SDG 5 (Gender Equality)](https://www.convergence.finance/news-and-events/news/5lqarXZRuQEMKeyeI9cI8e/view "Blending for gender balance"), witnessing a number of blended finance initiatives aiming to mainstream a gender lens, including the [2X Challenge](https://www.convergence.finance/news-and-events/news/4E6ktbVZY4c2seCociCqO6/view "G7’s 2X challenge: Blending finance with a gender lens"), the [Equality Fund](https://www.convergence.finance/news-and-events/news/4TEBJjU9fzApNJ9rdmZOEm/view "Blended Finance and Gender-Lens Investing"), and [Women’s World Banking](https://www.convergence.finance/news-and-events/news/5lqarXZRuQEMKeyeI9cI8e/view "Blending for gender balance"). Nonetheless, unlocking more capital to improve the development outcomes for women and girls remains a challenge.

This year, Convergence analyzed how gender has been incorporated in the blended finance market, based on its database of over 530 blended finance transactions, the majority of which have launched since 2010. Convergence found that while blended finance has demonstrated the ability to mobilize additional financing for gender-focused projects, publicly available information indicates that participants in blended finance transactions have not taken deliberate, consolidated action to incorporate a gender lens. 

## How has gender been approached in the blended finance market?

To assess the state of gender lens investing in the blended finance market to date, we drew from [Grand Challenges Canada’s Gender Equality Coding System](https://www.grandchallenges.ca/funding-opportunities/gender/white-paper/ "Grand Challenges Canada | Gender White Paper") to categorize historical deals into three main categories, assigning scores ranging from 0 - 2 to all transactions: 

![Figure 1: Convergence’s Gender Scoring for Blended Finance Transactions](//images.ctfassets.net/4cgqlwde6qy0/6QrEHaXg6HKymUsTQfl4kv/773f6ade2f2cff552bc2c51f549b6ab1/Slide3.png)
*Figure 1: Convergence’s Gender Scoring for Blended Finance Transactions*

Of the ~530 historical blended finance transactions analyzed, and based only on materials in the public domain, almost 24% of the transactions reflected a gender focus, with 14% of transactions achieving a gender score of 1, and 10% achieving a score of 2. Most deals (76%) were given a gender score of 0. 

## What do these trends reveal about the state of gender lens investing?

![Figure 2: Proportion of blended finance transactions with a demonstrated gender focus ](//images.ctfassets.net/4cgqlwde6qy0/6PycushwPYChIGTgiZo72Z/598f2c6569d77c4e548a6375d85324e3/Slide1.png)
*Figure 2: Proportion of blended finance transactions with a demonstrated gender focus *

Unsurprisingly, 3/4 of blended finance transactions demonstrated minimal gender-awareness. Most of these transactions did not evidence a consideration of the relationship between gender and other socio-economic factors. Public descriptions of the transactions provided no details on *how* women or girls might benefit from them, (e.g. through increased health, safety, or improved access to and control over resources.) Some transactions discussed women and girls in general terms but did not articulate how the project, fund, or facility would specifically empower women or improve their access to resources. For example, a press release on one project stated (paraphrased): *“Given the fact that women spend more time in the home than men, the clean cooking project will be more beneficial for women.”* Such statements lack substantive detail on how particular categories of women, rather than women as half of the general population, are affected. 

__Gender-disaggregated data is common in blended finance__

Collecting gender-disaggregated data is an important first step in developing evidence-based approaches for equitable development and assessing the impact of the blended finance market on women and girls. Thus, our baseline criteria for a score of 1 was at minimum the presence of gender-disaggregated data, most frequently evidenced through impact reports provided by fund managers or projects sponsors. With this baseline, we found 68 transactions to be ‘gender-aware and counting heads’, scoring a 1. More than a third (33%) of all blended finance transactions reported gender-disaggregated data. Commonly used indicators are the proportion of women-owned businesses in a fund or facility’s SME portfolio and the number of female participants in trainings and capacity building programs. On an organizational level, indicators include the percentage of an organization that is female-owned (or the number of women members in a cooperative), and the proportion of a board of directors or management team comprised of women. 

One example is the Acumen Resilient Agriculture Fund (ARAF). The fund provides equity and grant funding to support pioneering, and early-growth stage innovative agribusinesses to enhance climate resilience of smallholder farmers in Africa. It received grant and equity investments from FMO (Dutch development bank) and the Green Climate Fund (GCF), amongst others. With support from GCF, a [gender assessment](https://www.greenclimate.fund/document/gender-assessment-fp078-acumen-resilient-agriculture-fund-araf "GCF Gender Assessment") and a [gender action plan](https://www.greenclimate.fund/document/gender-action-plan-fp078-acumen-resilient-agriculture-fund-araf "GCF Gender Action Plan") was conducted for the fund. First, a gender assessment was conducted to identify the gaps that should be addressed by gender-responsive project interventions and included gender disaggregated data on key development indicators in its target countries of Uganda, Ghana and Nigeria. The action plan then focused on integrating the constraints and opportunities identified through the gender analysis into the project design. This included targeting the number of women and girls reached by ARAF over 12 years, the number of ARAF targeted households headed by women, and several other outcome indicators disaggregated by gender.

![Figure 3: Proportion of transactions that report gender-disaggregated data since 2010 ](//images.ctfassets.net/4cgqlwde6qy0/3DaVyWDlrpAalSySDPEAwE/574f645d5ff26ef2c2d228c9ac06341e/Slide2.png)
*Figure 3: Proportion of transactions that report gender-disaggregated data since 2010 *

__From counting heads towards gender-intentional actions__

To accelerate progress towards gender equality, there must be a shift towards concrete, gender-intentional actions. Only 57 historical transactions in our database signaled an intentional aim to achieve women’s empowerment or gender equality, thus scoring a 2. Unsurprisingly, we found an outsized focus on gender-intentional transactions in the microfinance (25% of transactions), health (15% of transactions), and water, sanitation and hygiene (WASH) sectors (17% of transactions), including the [IIX Women’s Livelihood Bond](https://www.convergence.finance/resource/1VB77bWNu0cGEeaCsOYwCq/view "Convergence | IIX Women's Livelihood Bond Case Study"), the [Japan ASEAN Women Empowerment Fund](https://www.convergence.finance/resource/5AR5njuJR45khZMkblhjOa/view "Convergence | Japan ASEAN Women Empowerment Fund Case Study"), [WaterCredit Investment Fund 3](https://www.convergence.finance/resource/4VLkTKyP0lzPzDhp6IoqF0/view "Convergence | WaterCredit Investment Fund 3 Case Study"), and [Sanergy](http://www.sanergy.com/ "Sanergy"). What all these transactions had in common was an explicit target to remove respective resource constraints faced by women and girls, whether it was access to quality education, vocational training, toilets or microloans.

Our analysis also shows that a gender lens can also be comprehensively integrated in infrastructure projects. Optima Energía, a Mexican energy service company, received support from the Canadian Climate Fund for the Private Sector in the Americas (C2F) and the Inter-American Development Bank (IDB) to install 25,000 high efficiency lights for the Municipality of Ensenada. The LED technology boosts the quality of light in the streets and contributes to public safety whilst reducing electricity expenses. Optima Energía received funding from the Canadian Climate Fund to sign the [Women’s Empowerment Principles](https://www.weps.org/ "Women’s Empowerment Principles") and achieve certification of compliance with government standards on workplace equality under the Mexican Standards on Labor Equality and Non-Discrimination. Publicly available [documentation](https://www.idbinvest.org/en/download/publication/832/attachment/7081 "IDB Invest | Financial incentives to close the gender gap") noted that Optima Energía created an internship for female engineering students in 2016 and 2017 to gain experience in a sector where they are underrepresented.  

## Towards greater impact for all genders

At large, blended finance practitioners have yet to address gender in a comprehensive manner or convey in their public outreach how they are addressing gender. Nevertheless, there are many positive examples of how a gender lens can be incorporated into blended finance transactions. Convergence recognizes the need to move beyond the gender binary to discern the impact of blended finance transactions on those identifying across the gender spectrum. The growing prevalence of gender-disaggregated data in the blended finance market is a crucial step towards developing a more cohesive set of metrics to capture gender equality outcomes. With improved data and information, gender analysis will become more reliable and standardized over time.

To make a lasting impact, investors and deal sponsors of all stripes must move beyond merely counting the number of women reached. Transactions that only refer to women by general statements or the number of female beneficiaries may lead to gender-washing at the cost of more substantive action. Furthermore, deal sponsors who cannot articulate gender issues will find themselves at a disadvantage in competing for capital. We believe this will be true across the board over time. And from our vantage point within the blended finance market, we expect the trend to be even more pronounced for anyone fundraising for a blended structure, where the support of catalytic, impact-driven funders is critical in attracting more traditional commercial investors. If designed and executed appropriately, projects with an integrated gender lens can catalyze greater, sustainable change. Making that case will matter. 

__Convergence is committed to channelling insights from its gender analyses into dialogue to share existing benchmarks and document good practice in the field. We will continue to work towards refining our gender scoring criteria as we gather more data.__


*This blog post, contributed by Convergence Data & Research Intern, [Divya Jalan](https://www.linkedin.com/in/divyajalan/ "Divya Jalan | Data & Research Intern at Convergence"), is part of a new series that will look at gender in the blended finance market, including key opportunities and challenges for achieving, measuring, and bolstering gender equality in blended finance transactions. Stay tuned for future blogs in the series. *

This year, Convergence analyzed how gender has been incorporated in the blended finance market, based on its database of over 530 blended finance transactions, the majority of which have launched since 2010. 

Assessing Gender-Lens Investing in Blended Finance

Assessing Gender Lens Investing in Blended Finance

COVID-19’s potential impact on the Sustainable Development Goals [is becoming clear](https://www.convergence.finance/news-and-events/news/3mh2pgzn6viJg6maXsJCIw/view "COVID-19, the Sustainable Development Goals, and Blended Finance"), and [global trade](https://www.qberacapital.com/post/trade-finance-an-asset-class-that-underpins-socio-economic-development "Trade Finance – An Asset Class that Underpins Socio & Economic Development"), a US$ 17 trillion industry which helps direct funds to businesses worldwide, supporting economic growth, industrialization and infrastructure development, is where great disruptions are already being felt. The COVID-19 pandemic has challenged global trade and supply chains in four different ways: 

__1.	Supply chain and logistics disruptions__

Consumers worldwide have dealt with delays or shortages in the supply of goods, with companies enduring the same challenges, particularly those sourcing goods from multiple suppliers across multiple countries. Disruptions in global trade and supply chains directly impact economic competitiveness and job creation, with developing market companies facing greater difficulties in exporting their goods overseas, leading to cutbacks in export-oriented jobs in the developing world, [impacting SMEs and the livelihoods of poor people in particular](https://www.wto.org/english/news_e/news20_e/trfin_01jul20_e.htm "Heads of WTO and development banks voice support for trade finance amid COVID-19 crisis"). These broad trends contributed to the [IMF’s latest projection](https://www.imf.org/en/Publications/WEO/Issues/2020/06/24/WEOUpdateJune2020 "A Crisis Like No Other, An Uncertain Recovery") of a contraction of 4.9% in global GDP in 2020. Lives are directly affected when critical medical goods such as breathing machines are delayed, or critical components are unavailable. However, such disruptions will likely soon be overcome through various types of workarounds, where necessary.

__2.	Re-thinking supply chain strategies and industrial policies__

Companies worldwide are reviewing their supply chain strategies, very few of which were designed to cope with a global pandemic. Diversification and redundancy will be the trends to watch in this space. For example, to reduce future risks of supply chain disruption post-pandemic, [Japan launched a US$ 2.4 billion fund](https://theaseanpost.com/article/japan-switching-manufacturing-asean "Japan switching manufacturing to ASEAN") to help finance local businesses bringing manufacturing back to Japan from China, or moving it to other countries in Southeast Asia. Ultimately, cost increases may arise, which manufacturers will try to pass on to customers. This will happen across different industries, particularly where cross-border supply chains exist. Governments are also starting to ask whether certain critically important products, such as testing kits and face masks, could be produced domestically to avoid international competition for limited manufacturing capacity in future crises. Just as companies will invest to modify their supply chains, governments may rethink their industrial policies in the realm of critical goods, however defined.

__3.	Digitization for resiliency__

The pandemic has revealed the urgent need to digitize global trade and supply chains to keep goods and services moving and operable. This trend will undoubtedly lead to an evolution in the global system of trade finance, which is largely paper based. More speed is needed to create a globally harmonized and interoperable digitized infrastructure with standard identifiers (e.g. the Legal Entry Identifier developed by the International Organization for Standardization) and with laws and technical protocols (as recommended by the International Chamber of Commerce and the UN Commission on International Trade Law). This requires investment, international dialogue, and process re-engineering across trade finance departments at banks, and in exporters, importers, customs, port operations, shipping companies and freight forwarders. The Trade and Development Bank’s [partnership with dltledgers](https://www.convergence.finance/news-and-events/news/3almotcrqDvuz9FGjbrcGR/view "Member Spotlight with Michael Awori from the Trade Development Bank (TDB)"), a platform using blockchain technology to enable trading companies to connect their supply chain network to their financing banks, thereby digitizing trade finance processes, is a good example of how vital trades can continue to be effectively financed despite the pandemic. 

__4.	Pressures in banking systems and trade finance__

Banks’ credit appetites tend to change with a lag, but when they change, they do so abruptly. COVID-19’s demand shock threatens to create a global wave of bankruptcies and non-performing loans, pressuring banking systems worldwide. For example, in the wake of the Global Economic Crisis (“GEC”), developed country banks quickly reduced their risk limits and all but stopped confirming letters of credit from developing country issuing banks. As trade finance halted, it threatened essential trade flows and job creation, and several DFIs stepped in to provide guarantees of issuing banks at market-conform rates. DFIs like IFC, EBRD, and ADB continue to operate these programs with significant financial success and development impact. Indeed, in response to the pandemic, the [AfDB is allocating up to US$ 270 million](https://www.afdb.org/sites/default/files/2020/04/23/supporting_our_clients_through_the_crisis_-_crf.pdf "AFRICAN DEVELOPMENT BANK COVID-19 RAPID RESPONSE FACILITY (CRF)") to help its private sector clients access trade finance and guarantees, while IFC’s existing Global Trade Finance Program is [providing US$ 2 billion](https://www.worldbank.org/en/news/press-release/2020/03/17/world-bank-group-increases-covid-19-response-to-14-billion-to-help-sustain-economies-protect-jobs "World Bank Group Increases COVID-19 Response to $14 Billion To Help Sustain Economies, Protect Jobs") to cover financial institutions’ payment risks, thereby facilitating their trade financing operations. With COVID-19, global trade finance so far does not seem to have suffered any material credit risk or operational risk issues, but the GEC scenario may repeat itself. Let’s hope for the best but prepare for the worst.

## How can blended finance support economic recovery and resiliency in global trade?

While [blended finance](https://www.convergence.finance/news-and-events/news/dpcDxlUX2UVdIDTt9TjAi/view "COVID-19: How Blended Finance Responds") will have a minimal role in the initial response to COVID-19, including disruptions to supply chains and logistics, it can contribute materially in the following three areas for medium-term recovery and long-term economic reconstruction:

__1.	Reduce prices of vital goods:__ Governments rethinking their industrial policies to improve pandemic resilience and achieve self-sufficiency for certain critical goods are likely to pursue Public-Private Partnerships (PPPs) to alleviate pressure on the public purse. Here, government agencies tender out concessions for the manufacturing and distribution of key products to the private sector, and back these concessions with partial offtake contracts. Blended finance can help lower the prices of critical goods, like medicine or medical diagnostic equipment to improve the accessibility of essential commodities, especially for low-income consumers; by “buying down” the cost of manufacturing through philanthropic grants, viability gap funding and technical assistance from DFIs, international health or development agencies, and concessional financing through private foundations and/or local state-owned banks. 

__2.	Catalyze private sector capital:__ Post COVID-19, DFIs and development agencies may be more interested in funding the digitization of global trade finance in countries deemed to be key nodes of global trade. Again, this may take the form of PPPs, where blended finance can be used to catalyze private sector capital, offering an appropriate financial return for the risk taken in making impactful digital investments. Savings from efficiency gains and incremental revenues created by more business activity, more customs duties collected, and less leakage should make these digital infrastructure investments financially attractive propositions. Importantly, the [Principles for Digital Development](https://digitalprinciples.org/ "Principles for Digital Development") – guidelines integrating best practices into technology-enabled development programs - should be adhered to.

__3.	Boost transaction volume:__ DFI trade finance programs extend guarantees to cover relatively short-dated trade finance transactions. Depending on the issuing banks selected to be eligible for the guarantees and their customer base, the impact of these programs can be felt in a large number of SMEs, supporting job creation, economic growth, and gender equality. These guarantee portfolios yield low single-digit market-based returns, with typically zero losses and very low delinquencies over extended periods of time, due to the criticality of the goods purchased. This fixed income-like risk-return profile, akin to longer-dated commercial paper or shorter-dated notes, has proven to be attractive to insurance companies, who are happy to take some of the guarantee exposure off the books of the DFIs running the trade program. This use of DFI guarantees, enhanced by risk transfer mechanisms to the private sector to free up DFIs’ balance sheets to boost transaction volume, is a powerful example of blended finance leveraging public sector risk guarantees into private sector capital deployment. This co-financing can be taken to the next level through a more developed syndication effort by DFIs and their trade finance programs, marketing this investment opportunity to a broader spectrum of institutional investors, for whom it can serve as an appropriate liquidity management strategy.


*This blog post, contributed by Robert v an Zwieten, is part of a series on how blended finance can help mitigate the impact of COVID-19 on the sustainable development goals. Did you read our first article on [COVID-19, the Sustainable Development Goals, and Blended Finance](https://www.convergence.finance/news-and-events/news/3mh2pgzn6viJg6maXsJCIw/view "COVID-19, the Sustainable Development Goals, and Blended Finance")?*

COVID-19, the Sustainable Development Goals, and Blended Finance

Convergence shares how COVID-19 has challenged global trade and supply chains in four different ways.

Trade Finance & Blended Finance during COVID-19

Trade Finance, Supply Chains, and Blended Finance in the Age of COVID-19

*Originally published on [ImpactAlpha](https://impactalpha.com/five-tips-for-attracting-capital-to-blended-finance-vehicles/?utm_source=ImpactAlpha&utm_campaign=7f3ff448b9-EMAIL_CAMPAIGN_2019_08_20_12_35_COPY_01&utm_medium=email&utm_term=0_57980c6bda-7f3ff448b9-105978721&mc_cid=7f3ff448b9&mc_eid=19bcc9d316 "Five tips for attracting capital to blended finance vehicles"). *


Blended finance has gained significant momentum in the past few years, and we increasingly see more early stage and late stage blended finance deals emerge to attract the attention, and ultimately capital, of investors to advance the SDGs. With traditional aid and development finance further stretched to meet immediate response and recovery needs brought on by COVID-19, there is greater urgency to create more bankable deals to draw increased and larger volumes of private capital to SDG projects. As the aftermath of this pandemic slowly reveals itself, two things are clear: (i) in the current context, investors are more cautious to allocate capital, and (ii) concessional capital providers will be even more selective. Now more than ever, deal sponsors–any organization looking to fundraise or sponsor a deal– must strive to set themselves apart.

Over the course of the last 5 years, our work to capture blended finance activity, support market acceleration, and match investors and deals, has helped us identify some effective ways to yield “better blending.” Whether you are an international NGO supporting gender-smart SMEs or a first-time fund manager developing a tiered structure to meet a diverse set of impact objectives, there are certain steps worth taking to attract capital from funders and investors:

__1. Be intentional with your blended approach:__ Blended finance is not a remedy for all development challenges. There are many development interventions that require a purely grant funded model, or are commercially viable, and do not need catalytic capital to give them a boost. This is often one of the first questions a donor or concessional capital provider will ask themselves before proceeding, often framed as, *[“Is my role and participation additional?”](https://www.convergence.finance/news-and-events/news/4gYWMo8JoW6VZsmYH8F8IV/view "What is Additionality?")* because they have little interest to boost someone else's returns without buying associated impact, or patch up a weak deal. So, deal sponsors must express why and how a blended finance approach is right for the investment vehicle and thesis. Demonstrate how you arrived at your proposed structure; reveal the considerations made for other structures, and/or share perspectives considered as a result of consultations with different investors to improve the creditability of your proposal. You will likely also do better if you can link your capital structure to the specific development impact that would be unlocked as a result. Remember, from the point of view of a donor agency, foundation, or NGO, understanding the best and most efficient way to ‘buy impact’ or, demonstrate the specific impact you can generate with each dollar received, is imperative. If you can generate competitive returns without support from catalytic capital, or if a funder recognizes they could be more impactful by providing a grant of the same size or less, your blended vehicle likely won’t raise catalytic capital.

__2. Balance innovation and scale:__ Innovation is exciting, but the reality is, institutional investors don’t share the same sentiment for innovative structures, and most are [interested in standardized products](https://www.convergence.finance/resource/3cpgfofIUn2QY8rFEV2IFt/view "How to Mobilize Private Investment At Scale in Blended Finance") that are familiar, tested, and proven. At Convergence, we encourage deal sponsors to ask, “Could this be achieved using a simpler structure?” The good news is that no matter what sector, SDG, or risk you face, there are [case studies](https://www.convergence.finance/resource "Convergence Resource Library") you can learn from, iterate, and even simplify. One trend worth mentioning is that portfolio approaches and tiered structures enable diversification, which in turn reduces risk. If we analyze historical deals in aggregate, we see how a portfolio approach can enhance a portfolio of projects from speculative grade to investment grade, while allowing investors with different risk, return, and impact motivations to invest alongside each other. In order to achieve scale, we must continue to learn from those before us and replicate what works.

__3. Do your homework on targeted investors and funders:__ Deal sponsors that understand the market and key players will more likely impress investors and funders. Learn who is who, and types of capital investors and funders provide. Knowing historical activity can also assist deal sponsors in identifying and understanding investors’ specific limitations and areas of interest. Tools like the Investor-Data tool allows Convergence members to perform filtered searches (i.e. sector, region and SDG) to identify relevant investors and funders. There are also a host of other market builders dedicated to raising awareness and creating tools to invest for impact. The GIIN, Mission Investors Exchange, OECD, and AVPN are a few with great publicly available resources.

__4. Avoid overuse of buzz words and jargon:__ Use targeted terminology and make sure you can substantiate what you say. For instance, if you include SDG 5 (Gender Equality) as a targeted SDG and focus area of your investment opportunity, you should be able to (i) provide an analysis of how gender issues might affect your transaction, (ii) explain how your transaction in turn will help achieve greater gender equality, and (iii) detail how you intend to measure this impact through gender disaggregated data. Further, if you are seeking a combination of concessional and commercial capital, you may find it necessary to tailor your marketing materials to each of those specific audiences.

__5. Build a Brain Trust:__ Blended finance is currently more of an art than a science and demands a range of organizations collaborate to achieve a common goal. A brain trust or advisory circle can help foster collaboration; and it pays to identify and engage potential investors and funders, and consider their feedback, as early as possible. A brain trust can also ensure you adopt all the lessons available on how to approach similar development challenges or risks – real or perceived –that require mitigation or risk transfer. We recommend building this taskforce and sound testing your concept as early as 3-6 months before fully developing and finalizing a vehicle.

Blended finance is on the rise but remains a complex structuring approach. Designing a vehicle takes time and fundraising can conservatively take anywhere from 1-2 years, even with a proven concept and expansive networks. Utilize the resources and tools available in the market to support your journey in designing the most investible blended finance vehicle. The reality is most structures look considerably different upon financial close, no matter what. So, deal sponsors must manage expectations; be open to reimagination and patient with the process to produce the most viable model for developmental impact and financial return. This way, we are better positioned to see more commercially viable and investible deals in developing countries targeting the SDGs.

Safia Gulamani draws from Convergence’s experience in enabling market acceleration and operating a matchmaking deal platform and offers 5 practical tips to attract capital from funders and investors.

Five Tips for Attracting Capital to Blended Finance Vehicles

__Toronto, 24 June 2020 –__ With funding from the Australian Government, Convergence is pleased to announce it has awarded a feasibility study grant to Allotrope Partners (Allotrope) through the [Indo-Pacific Design Funding Window](https://www.convergence.finance/design-funding/open-window/indo-pacific-open-window "Indo-Pacific Design Funding Window"), supporting the development of an innovative blended finance vehicle targeting Sustainable Development __Goal 7–Affordable and Clean Energy__ in the Philippines.

The Philippines faces a complex energy challenge; as the demand for energy continues to climb, supply tightens and energy prices [rise](https://www.manilatimes.net/2020/02/28/supplements/philippine-energy-outlook-for-2020/697605/ "Philippine Energy Outlook for 2020"). The cost of transmitting power and transporting fuel to the 7,000+ islands of the Philippine archipelago has led to the Philippines having the highest electricity rates in Asia. Investing in renewable energy is imperative for the country’s progress towards energy and economic sustainability. Fortunately, the Philippines has many potential renewable energy resources including solar, wind, ocean and geothermal to help realize Goal 7.

Convergence’s feasibility study grant will enable [Allotrope](https://www.allotropepartners.com/ "Allotrope"), an international clean energy advisory firm specializing in emerging markets and technologies, to explore the feasibility of a bankable structure for the Local Utility Project Aggregator (LUPA), a proposed US$150M blended finance vehicle that will bring together Electric Cooperatives in the Philippines to invest in and own renewable energy projects. Through this vehicle, Allotrope aims to reduce the Philippines’ dependence on unsustainable and expensive energy sources such as coal and diesel, advancing the government’s goals to transition 35% of its energy mix to renewable energy.

“LUPA is a strong fit for the Indo-Pacific Design Funding Window as it aims to develop a fit-for-purpose financial structure to empower local Electric Cooperatives to meet renewable energy targets and catalyze local market financing, paving the way for a greener future and lower energy prices for the Philippines, ” says Robert van Zwieten, Managing Director for the Asia-Pacific region at Convergence.

Allotrope has strong relationships with investors, developers, and government decision-makers in the region, with a proven track record of leading public-private collaboration initiatives in the Indo-Pacific region to spur renewable energy investment and deployment at scale. Allotrope will draw upon this experience to engage with a range of local stakeholders and conduct a gender analysis to ensure effective and equitable implementation throughout the LUPA design process. 

“Our team is eager to partner with Convergence on this exciting effort to expand renewable energy opportunities for Electric Cooperatives and the communities they serve. This feasibility grant will play a critical role in ensuring that LUPA can forge pathways for thousands of megawatts of community-focused renewable energy deployment across the Philippines,” says Marc Stuart, CEO of Allotrope Partners.

 

__About Convergence’s Design Funding Program__

Convergence’s [Design Funding Program](https://www.convergence.finance/design-funding "Convergence Design Funding Program") operates as a market acceleration tool providing early-stage capital to support blended finance solutions in emerging markets to accelerate the number of investible transactions in market targeting the Sustainable Development Goals. The Indo-Pacific Design Funding Window provides grant funding for the design and launch of catalytic blended finance solutions focused on sustainable & resilient infrastructure and gender equality in certain countries in the Indo-Pacific region. This Design Funding Window is funded by the Australian Government.

Convergence accepts Design Funding applications on a continuous basis. To be considered for the next review cycle for the Indo-Pacific Design Funding Window, practitioners are invited to submit their applications by August 10, 2020. Find out more [here](https://www.convergence.finance/design-funding "Convergence Design Funding Program").

 

__About Convergence__
 
Convergence is the global network for blended finance. In addition to market acceleration through its Design Funding program, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 200 public, private, and philanthropic investors as well as sponsors of transactions and funds. To learn more, visit [www.convergence.finance](https://www.convergence.finance "Convergence"). 

 

__Media Contact__
 
Namrata Narayan 

Head of Communications 

Convergence Blended Finance

Tel.: +1 647-886-7179 

namrata.narayan@convergence.finance

Convergence has awarded a feasibility study grant to Allotrope Partners through the Indo-Pacific Design Funding Window, supporting the development of an innovative blended finance vehicle targeting SDG 7–Affordable and Clean Energy in the Philippines.

Convergence Awards Allotrope Partners Feasibility Grant

Convergence Awards Allotrope Partners Feasibility Grant through Indo-Pacific Design Funding Window

[The Trade and Development Bank (TDB)](https://www.tdbgroup.org/ "TDB Group") is the regional development finance institution for Eastern and Southern Africa. It acts as a specialized African wholesale bank, offering short, medium- and long-term financing products including debt, equity, and guarantees, across a wide set of sectors, supporting public and private sector clients to advance their development projects and realize transactions that contribute to the SDG agenda.

As liquidity in trade proves vital in times of crisis, we connected with Michael Awori, Chief Operating Officer at TDB, to learn more about the bank’s blended trade finance initiatives and innovations to support the flow of trade and capital and goods in the region to ensure development projects get the support needed to generate impact. 
 
## Could you shed some light on how TDB’s blended trade finance initiatives may help mitigate the impact of COVID-19?

Liquidity is key. What we are doing is designing and implementing solutions to ensure liquidity continues to flow for short-term trade, long-term trade finance and corporate finance to keep development on track. Recently, we closed a primary forfeiting transaction in the healthcare sector. For this trade project, we worked with the sponsor of a hospital project, the contractor and a local bank. In this case, TDB delivered liquidity to allow the project to continue, enabling the local bank to provide unfunded exposure and deploy its liquidity into other ventures. Likewise, we have recently signed a revolving pre-export structured trade commodity finance facility for a fair-trade company, enabling it to unlock the working capital needed to stay competitive at a time when liquidity is in short supply. 

TDB also provides direct liquidity to several institutions supporting vital sectors so goods can flow, and supply chains can be maintained. The other underlying challenge we are responding to is that of trade finance still being very paper heavy. The fact that many airports are closed across our region means paper cannot move. When this happens, trade comes to a grinding halt. TDB has accelerated its technological innovations through a partnership with [dltledgers](https://www.dlt.sg/ "dltledgers"), a platform that uses blockchain technology to enable trading companies to connect their supply chain network to their financing banks, thereby digitizing trade finance processes and documentation. Investing in blockchain has enabled us to continue to effectively finance vital trades, such as imports of agricultural commodities, working closely with suppliers and institutions within our member states, despite the significant challenges caused by the pandemic. 
 
## What are the biggest barriers to financing the SDGs in Africa? 

One of the biggest barriers is the gap between perceived risk and real risk. Across Africa and our footprint, certainly there are regions with poor enabling environments, where we see weak institutions, poor infrastructure, high costs of doing business, stretched timelines for pipeline origination, and big data and information gaps. Those factors do affect risk. But these realities and conditions exist in many markets beyond the continent. Africa is not unique in these circumstances. Unfortunately, the perceived level of some of these risk factors is higher in Africa than elsewhere. What we need to recognize is that the real risk is not. Those bold enough to step forward and ignore the noise are discovering it is possible to find attractive deals, price them and execute those deals successfully. 
 
## Where do you see the greatest opportunity in overcoming this perceived risk challenge? What can be done to mobilize domestic institutional capital toward developing projects in the region?

We must start at home. We need to put more of Africa’s long-term institutional capital to work on the continent rather than investing it in low-yielding securities elsewhere. TDB is certainly focused on this. We have over 14 African institutional investors–including pension funds–among our shareholders, who, apart from the exceptional and consistent financial returns we deliver, have invested in TDB because of the SDG-aligned returns we offer. In addition to this, we can improve the conditions attached to this capital. Blending often comes with strings that impact the absorption of institutional capital, whether it is the type of project, or the type of sponsor, or the source of equipment. While governance matters are important, we should place greater emphasis on outcomes and monitoring and evaluation, with less emphasis on restrictions at inception. This could lead overall to higher delivery and absorption of institutional capital towards the SDGs.

Also, capital going towards Technical Assistance (TA), or softer support to get projects to bankability, could support higher take-up and an increased number of projects being successful. Capital that is more patient and willing to take on a longer tenor will play a key role. Here, African institutional capital can also provide a local currency component to de-risk transactions to get more SDG projects to financial close. 
 
## How is TDB using trade finance and blended finance to close the SDG funding gap?

To some extent, everything we do is blended. On the treasury side, TDB mobilizes funding from various sources (e.g. public sector, institutional investors, private and commercial capital) towards our portfolio, over half of which directly and indirectly contributes to SDGs. 
Given the recent pullback of global correspondent banks from Africa, and thanks to our investment grade credit ratings, we have cemented our role as the ideal partner to intermediate global and regional capital into the region, and as such, have been playing an increasingly critical role in addressing trade finance gaps as well as forex challenges in the region. Our financing interventions have averted fuel shortages in certain countries. In others, we have helped secure the sourcing and imports of strategic commodities, ultimately facilitating higher levels of inter and intra-African trade and regional integration. Indeed, amid COVID-19, TDB continues to ramp up support to import wheat, grains and fertilizer, enhancing agriculture and ensuring food security, as well as employment. For the long-term part of our business, we fund several manufacturing projects and facilitate infrastructure development. For our energy portfolio, we are placing a greater emphasis on financing renewable energy projects, particularly hydro, wind and solar, which already account for over 70% of our portfolio. 

Then there is regional integration, which is embedded in our DNA as the sub-region’s DFI. Our interventions have included funding ports and transportation, including roads, railways and regional airlines. Our work is designed to facilitate greater linkages both regionally and internationally, and a higher level of trade. Sitting here in Nairobi, the Silicon Savannah, we have seen the benefits of mobile money and the financial inclusion benefits that emerge as a result. To expand these benefits regionally, we have supported the telecom sector through funding expanded fibre optic cable capacity, such as the Burundi backbone project, as well as more recently, leading telecoms such as Econet in Zimbabwe and Cable & Wireless in the Seychelles.
 
## How can a regional DFI like TDB grow the field of blended finance and engage other local players such as national DFIs and local commercial banks? 

We collaborate significantly with local and regional banks as well as national DFIs in our regular course of business. Beyond standard operations, we have a 3-year pilot program targeting SMEs, providing various instruments from grants, guarantees, Letter of Credit confirmations and TA, via partnerships with local financial institutions, and with engagement from trade finance institutions and multinational development finance institutions (DFIs). For funding and membership, we are mobilizing additional institutional investors, be it pension funds, insurance companies, development funds, as well as other regional DFIs, to join the bank and blend their capital with the capital we raise. We even had a global African think-tank join as shareholder last year. 

Regarding DFIs, we are supporting mechanisms to help other counterparties assess the risk of capital of some of these institutions that may not be rated by a global rating agency like Moody’s. We are part of the Association of African DFIs (AADFI) that reviews African DFIs against several different standards and benchmarks, most of which mirror what the ratings agencies measure, but it is an African institution holding accountable African DFIs. Through these measures, we are raising governance and performance standards across the industry, which we believe will ultimately lead to higher volumes of financing flowing into the region. 
 
## What is your strategy for mainstreaming gender at TDB and encouraging a trickle-down effect at other DFIs and financial institutions? 

We are mainstreaming gender and promoting gender inclusive practices in a few ways: (i) through our SME pilot program, we directly target women-owned business and apply financial and non-financial interventions to support the growth of these businesses, ii) within the financial institutions (FI) space, we assess and track the performance of our clients via different operational and financial metrics, including gender and youth, (iii) with 42% of our workforce being female, high representation of women in the ranks of senior staff and management, and a gender mainstreaming policy, by leading by example and institutionalizing gender mainstreaming internally ourselves, and (iv) through knowledge sharing and capacity building activities, we create spaces to share best practices and scale gender awareness to regional FIs whom we may not touch directly. We have worked with European Investment Bank on the Eastern Africa SME Banking & Microfinance Forum – some people do not know that – for the last couple of years. This is a good example of how TDB is ensuring knowledge and capacity building seeps in the region. 

Our inaugural, stand-alone Sustainability Report will be published shortly, and shares our work on gender, among other areas, further institutionalizing our commitment to gender and sustainability.

Convergence recently spoke with Michael Awori, TDB’s newly appointed COO, to learn about the bank’s blended trade finance initiatives and innovations to ensure development projects get the support needed to generate impact.

Member Spotlight with Michael Awori from TDB

Member Spotlight with Michael Awori from the Trade Development Bank (TDB)

__Toronto, 8 June 2020__– With funding from the [RS Group](http://www.rsgroup.asia/ "RS Group") for its Asia Natural Capital Design Funding Window, Convergence awards Blue Finance and Ocean Outcomes (O2) design-stage grants for blended finance solutions targeting Sustainable Development Goal 14–Life below Water.

Blue Finance receives a proof of concept grant for the Blended Blue Finance Facility (BBFF) for the effective management of several Marine Protected Areas (MPAs) in Southeast Asia. O2 is awarded a feasibility study grant for developing a pioneering Sustainable Seafood Fund that aims to change the way Fishery Improvement Projects (FIPs) are funded in the Asia-Pacific.

“We are delighted to use our design funding program as a true market accelerator to support Blue Finance and O2, both presenting promising and scalable blended finance solutions to attract greater private and public sector investment towards projects focused on natural capital across the Asia- Pacific,” says Joan Larrea, Chief Executive Officer at Convergence.

Marine and coastal ecosystems face ongoing threats from a variety of sources including unsustainable fishing, poor agricultural practices, coastal development and tourism. New financing models are needed to inject additional capital to support development projects advancing sustainable management of marine areas and fishing practices.

[Blue Finance](http://blue-finance.org/ "Blue Finance") is a social enterprise developing solutions for the management and financial sustainability of MPAs. Projects enhance marine natural capital, improve food security and incomes for vulnerable coastal communities and increase climate change resilience across Southeast Asia and the Caribbean. The BBFF structure brings together local communities, NGOs, government, donors, and investors in a collaboration that seeks to blend commercial finance and grant funding to finance the up-front capital needs of the MPAs.

“Conservation projects, particularly those focused on marine ecosystems, are not attracting enough commercial capital due to a shortage of investment-ready projects. This grant enables Blue Finance to increase investment in marine conservation and economic development in Southeast Asia,” shares Nicolas Pascal, Executive Director & Co-Founder of Blue Finance.

[O2](https://www.oceanoutcomes.org/ "Ocean Outcomes") works with commercial fisheries, seafood industry, local communities and NGOs to develop and implement creative solutions towards more sustainable fisheries and fish farming practices. O2 will receive design funding to explore the feasibility of a US$50M Sustainable Seafood Fund, leveraging private and public capital to better support improved practices in fisheries production.

“The lack of substantial, long-term financing for fisheries improvement is a significant barrier to meeting sustainable seafood production goals,” said Neel Inamdar, who is leading development of the Fund for O2. “Support from Convergence will allow us to scope a solution to this critical need by providing an opportunity for leading companies to mainstream sustainability into their business models while also addressing long term seafood supply risks.”

For Blue Finance, the grant will serve as critical early-stage capital to support facility design and structuring, fundraising and marketing, and getting several MPAs to investment readiness in Asia. O2’s grant will support fishery pipeline identification and screening, developing the investment structure, building an operating model, business plan and identifying potential investors.

 

__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 [Asia Natural Capital Design Funding Window](https://www.convergence.finance/design-funding/open-window/asia-natural-capital-open-window "Asia Natural Capital Window") supports blended finance solutions that find new ways to enhance and protect the world's stock of natural assets, including water, land, soil, air, plants and animals, by attracting private investment at scale. These solutions will directly support SDGs 13, 14 and 15, 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. This design funding program is the first of its kind in the region, anchored by RS Group at US$3M. The window is open to other co- funders and currently accepting applications.

 

__About Convergence__

Convergence is the global network for blended finance. On top of market acceleration through its Design Funding program, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 200 public, private, and philanthropic investors as well as sponsors of transactions and funds. To learn more, visit [www.convergence.finance](http://www.convergence.finance "Convergence Blended Finance").

 

__Media Contact__

Namrata Narayan

Head of Communications

Convergence Blended Finance

Tel.: +1 647-886-7179 

namrata.narayan@convergence.finance

With funding from the RS Group for its Asia Natural Capital Design Funding Window, Convergence awards Blue Finance and Ocean Outcomes (O2) design-stage grants for blended finance solutions targeting Sustainable Development Goal 14–Life below Water.

Grant Recipients Chosen for Asia Natural Capital Window

Blue Finance and Ocean Outcomes Become First Grant Recipients of Convergence’s Asia Natural Capital Window

*Image Source: MotleyFool*


The COVID-19 pandemic threatens the achievement of the Sustainable Development Goals (SDGs). With [investors](https://www.unescap.org/blog/financing-sdgs-covid-19 "Financing SDGs Under A New Normal: Challenges And Response To COVID-19 Pandemic") withdrawing $90 billion from emerging markets in the first 3 months of 2020 (the largest outflow ever recorded), and with rising debt burdens in developing countries and depreciating local currencies, the sustainable development agenda faces a difficult landscape. The pandemic is also directing critical domestic resources away from financing the SDGs while worsening pre-existing development challenges in ways that are interlinked. [People struggling to access food](https://docs.wfp.org/api/documents/WFP-0000114546/download/?_ga=2.101491649.1148624555.1589293938-251663906.1588772381 "WFP Global Report on Food Crisis") (SDG 2, Zero Hunger), for example, often suffer higher rates of underlying health conditions (SDG 3, Good Health & Well-Being) that make them more susceptible to developing severe COVID-19 symptoms. This is compounded by already-weak national healthcare systems under increased strain. 

Blended finance has solutions that can be funded today to address the challenges and reduce the economic effects of COVID-19. Blended finance combines development funds (from governments and philanthropic foundations) and private sector investment to fund SDG projects. Around [$15 billion of blended finance is mobilized annually](https://www.convergence.finance/resource/13VZmRUtiK96hqAvUPk4rt/view "The State of Blended Finance Report 2019"), and with over 500 blended finance transactions having reached financial close, numerous projects demonstrate how to successfully direct funding to targeted objectives. Here, we discuss COVID-19’s impact on the SDG agenda. We also highlight challenges in the real economy that, on the basis of our own analysis and our conversations with the development community, have been identified as being well-conditioned for blended finance solutions. In subsequent publications, Convergence will explore the role that blended finance can play in counteracting some of these challenges. The time for [blended finance at scale](https://www.convergence.finance/news-and-events/news/dpcDxlUX2UVdIDTt9TjAi/view?utm_source=Convergence-Covid-BF-Blog&utm_medium=website&utm_campaign=COVID-Statement "Blended Finance Responds to COVID-19") has truly arrived.

## COVID-19 and the SDGs

What are the likely impacts of the COVID-19 pandemic on the sustainable development agenda? Its impact on SDG 3 (Good Health & Well-Being) may be most obvious, with developing economies [unprepared](https://thehill.com/opinion/healthcare/482049-stop-coronavirus-and-the-next-epidemic-by-establishing-a-healthy-security "Stop coronavirus and the next epidemic by establishing a health security fund now") for the pandemic due to persisting challenges such as relatively weak health systems, vulnerable supply chains, and difficulties with infection prevention and control. But what are the pandemic’s likely effects on some of the other SDGs? 

Consider SDG 1 (No Poverty). [Average incomes in one out of five countries globally](https://developmentfinance.un.org/fsdr2020 "UN Financing for Sustainable Development Report 2020") were projected to decline ahead of the outbreak of COVID-19, mainly in Africa, Latin America and the Caribbean, as well as parts of Western Asia, and the pandemic is projected to further accelerate declines in per capita incomes. Commodity exporting developing countries, for example, [already experiencing](https://developmentfinance.un.org/fsdr2020 "UN Financing for Sustainable Development Report 2020") slowing growth in GDP per capita over the course of the decade, will be particularly impacted by the sustained weaknesses in commodity prices caused by the pandemic. Indeed, [estimates](https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2020-43.pdf "UNU-WIDER Estimates of the impact of COVID-19 on global poverty") suggest that global poverty could rise for the first time since 1990, potentially setting the world back a decade in achieving SDG 1. [An analysis](https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2020-43.pdf "UNU-WIDER Estimates of the impact of COVID-19 on global poverty") of COVID-19’s potential impact shows that the number of people living in poverty globally could increase by 85-135 million under a 5% contraction in per capita household incomes and consumption, by 180-280 million under a 10% contraction, and by 420-580 million under a 20% contraction. 

The global economic contraction ([forecast at 3% for 2020 by the IMF](https://blogs.imf.org/2020/04/14/the-great-lockdown-worst-economic-downturn-since-the-great-depression/ "The Great Lockdown: Worst Economic Downturn Since the Great Depression")) and the related drop in international trade ([currently estimated at 27% QoQ, for Q2 2020](https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2369 " COVID-19 triggers marked decline in global trade, new data shows")) will also directly threaten SDG 8 (Decent Work & Economic Growth), with [1.25 billion workers](https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/briefingnote/wcms_740877.pdf "ILO Monitor: COVID-19 and the world of work. Second edition") employed in sectors facing severe falls in output and lay-offs. Meanwhile, remittances from migrant workers [are forecasted to decline by 20%](https://www.worldbank.org/en/news/press-release/2020/04/22/world-bank-predicts-sharpest-decline-of-remittances-in-recent-history "World Bank Predicts Sharpest Decline of Remittances in Recent History") in 2020, the sharpest decline in recent history, cutting crucial income sources for many households throughout the developing world, while social distancing measures may have an outsized effect on livelihoods in developing nations with large informal economies without adequate social safety nets.

The pandemic also threatens progress on SDG 2 (Zero Hunger). Current [estimates](https://insight.wfp.org/covid-19-will-almost-double-people-in-acute-hunger-by-end-of-2020-59df0c4a8072 "WFP Risk of hunger pandemic as coronavirus set to almost double acute hunger by end of 2020") suggest that an additional 130 million people in low and middle-income countries could face acute hunger risk because of COVID-19. Pandemic response measures, such as restrictions on movement, threaten to heighten logistical challenges within business supply chains, [disrupting](https://docs.wfp.org/api/documents/WFP-0000114546/download/?_ga=2.56528875.1148624555.1589293938-251663906.1588772381 "WFP Global Report on Food Crisis") the transportation and processing of food, and [potentially straining](https://www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---sector/documents/briefingnote/wcms_742023.pdf "ILO | COVID-19 and the impact on agriculture and food security") the agricultural sector’s capacity to meet demand and provide stable incomes to over one billion people globally in the long-term. Export-oriented agricultural production may also be stressed, impacting multiple levels of the supply chain and local, national, and regional economies. Net food importers [may also come under pressure](https://docs.wfp.org/api/documents/WFP-0000114546/download/?_ga=2.56528875.1148624555.1589293938-251663906.1588772381 "WFP Global Report on Food Crisis"), particularly if their currencies further depreciate against the US dollar. 

Recent gains in gender equality may also be threatened by COVID-19, affecting SDG 5 (Gender Equality). With women likelier to hold insecure jobs in the informal economy and generally earning and saving less, with lower access to social protections, they are [disproportionately more impacted by economic shocks](https://reliefweb.int/sites/reliefweb.int/files/resources/policy-brief-the-impact-of-covid-19-on-women-en.pdf "Policy Brief: The Impact of COVID-19 on Women") and are at a greater risk of suffering from lay-offs. Women’s incomes and labour force participation are thus threatened by the pandemic, while gender-based violence is also rising under lockdown conditions, with the experience of past epidemic scenarios such as Ebola suggesting that the negative impacts on women’s economic livelihoods [are more longer-lasting than with men](https://reliefweb.int/sites/reliefweb.int/files/resources/policy-brief-the-impact-of-covid-19-on-women-en.pdf "Policy Brief: The Impact of COVID-19 on Women"). Women are also likelier to be front-line health workers and health facility service-staff, increasing their exposure to the virus. 

SDGs 7 (Affordable & Clean Energy) and 9 (Industry, Innovation, and Infrastructure) will also be affected by COVID-19. Developing economies already face a dearth of reliable and affordable energy for industrial and domestic uses. If governments make policy-based moves to shore up fossil-fuel plants, or otherwise redirect resources away from investments in renewable energy or boosting access to energy in favour of other near-term priorities, we could lose momentum in realizing SDG 7. For example, [reduced access to electricity](https://www.unescap.org/blog/covid-19-crisis-reinforces-importance-sustainable-energy-transition " COVID-19 Crisis Reinforces The Importance Of The Sustainable Energy Transition") could limit the ability of health centres in developing countries (particularly in rural regions) to provide key services and support frontline health workers. Any reallocation of resources away from sustainable development in favour of near-term GDP growth that slows progress in developing renewable and clean energy technologies could also affect SDG 13 (Climate Action). Finally, COVID-19 has highlighted the need for [disaster-resilient infrastructure](https://www.unescap.org/blog/covid-19-reveals-urgent-need-resilient-infrastructure "Blogs  COVID-19 Reveals Urgent Need For Resilient Infrastructure") to improve the ease of provision of transportation, connectivity and utility services.

In the table below, we present an overview of some of the key impacts of COVID-19 on the SDGs, while offering ideas for how we can begin to build back better for some of the SDGs in the post-pandemic economic reconstruction.  

![Table I](//images.ctfassets.net/4cgqlwde6qy0/31SdZn5zCSZpG1b9g7KIfN/e962af6225326010931527cdc84ec28f/Table_I.jpg)
*(See also: [UN, Shared Responsibility, Global Solidarity](https://unsdg.un.org/sites/default/files/2020-03/SG-Report-Socio-Economic-Impact-of-Covid19.pdf "UN, Shared Responsibility, Global Solidarity"))*



## COVID-19 and Blended Finance

What role, then, can blended finance play in response to the myriad development challenges caused by COVID-19? Convergence [has argued](https://www.convergence.finance/news-and-events/news/dpcDxlUX2UVdIDTt9TjAi/view?utm_source=Convergence-Covid-BF-Blog&utm_medium=website&utm_campaign=COVID-Statement "Blended Finance Responds to COVID-19") that blended finance can play an important role in the short, medium and long term response to the pandemic by accelerating economic reconstruction and improving pandemic resiliency, and by turbocharging our collective efforts towards achieving the SDGs. That is, blended finance must address the issue of risk to get private capital circulating again, scale-up existing approaches and recycle what works, and look to bolster the domestic financial sector to provide much-needed capital and liquidity.  

What are the specific areas in which blended finance can act? Table 1 presented the far-reaching impact of COVID-19 on a range of SDGs. In actuality, the pandemic’s impact cannot be so neatly segmented. The SDGs are interconnected in important ways: firstly, a deficiency in one SDG can cause a deficiency in another, and secondly, the pandemic has caused developments that trigger multiple effects on a range of SDGs simultaneously. For example, riots and violence in countries around the world over the lockdown and severe economic dislocations risk raising countries’ risk premiums, making capital scarcer and more expensive, thereby contracting their economies and affecting a wide range of SDGs at once. 

The key is to get capital circulating again. Therefore, in thinking through the blended finance solutions addressing COVID-19, and on the basis of our conversations with the development community, we have identified a selection of challenges in the real economy, affecting access to finance, which: (i) have worsened in the context of COVID-19, (ii) will affect multiple SDGs simultaneously, and (iii) blended finance can play an important role in countering. While the challenges and solutions presented in Table 2 may appear targeted primarily towards the development community, they each have a possible private sector angle. For example, while a typical international trade finance solution will involve a development finance institution providing guarantees of letters of credit, DFIs have found opportunities to offload some of this exposure to private sector companies (such as insurance companies), drawn to the relatively attractive yield and very low loss rates. We have also included two solutions, donor-supported conditional cash transfers and credit-enhanced COVID-19 bonds, which look to alleviate the difficulties faced by governments lacking the fiscal wherewithal to fund development outcomes or lacking the ability to easily raise financing on the international bond markets. Overall, the challenges and solutions in Table 2 are by no means exhaustive, but they do provide a sense of where development institutions looking to catalyze private investment can begin to focus their efforts in the fight against some of the key impacts of the pandemic. 


![Table II](//images.ctfassets.net/4cgqlwde6qy0/4X2zWKGwhzDQj1ZcmMqGz8/4dc9107ad1b5d415015f7f12bb3db36b/Table_II.jpg)


The good news is that blended finance has created and implemented solutions for all of the challenges listed above. For each category, there are solutions that can mobilize financing in three phases: in the short term over the next 3 months, in the medium term over the next 12 months, and in the long term. One ‘elephant in the room’ challenge in the short term is limited private investor appetite: the large majority of potential cross-border investment will remain on the sidelines in the short term (although networks like the [GIIN’s R3 Coalition](https://thegiin.org/r3coalition "GIIN’s R3 Coalition") are looking to counteract this). The benefit of blended finance here is that it mobilizes private investors across the whole spectrum of investment – real economy companies and financial investors, and domestic, regional and international investors. In addition, multilateral development banks and development finance institutions are [committing](https://www.cgdev.org/tags/multilateral-development-banks "Tag: Multilateral Development Banks"), and have the [financial firepower](https://www.odi.org/publications/16832-all-hands-deck-how-scale-multilateral-financing-face-coronavirus-crisis "All hands on deck: how to scale up multilateral financing to face the Covid-19 crisis") to step up activities in the short term, which can be tapered down as financial investors return in the medium and long term. 

*This blog post, contributed by [Andrew Apampa](https://www.convergence.finance/about/team/6vagDS0aL4cusKnOrWB6o "Andrew Apama | Senior Associate, Content"), is part of a series on COVID-19 and blended finance. Our intention is to follow up this piece with separate analyses of some of the individual challenges mentioned here, providing a practical resource on the specific blended finance solutions that can be leveraged to contribute to the fight against the impacts of COVID-19 in developing countries. The time for [blended finance at scale](https://www.convergence.finance/news-and-events/news/dpcDxlUX2UVdIDTt9TjAi/view?utm_source=Convergence-Covid-BF-Blog&utm_medium=website&utm_campaign=COVID-Statement "Blended Finance Responds to COVID-19") has truly arrived.*


Convergence highlights COVID-19’s impact on the SDG agenda and presents why the challenges facing the real economy are well-conditioned for blended finance solutions.

COVID-19, the SDGs, and Blended Finance

Women’s World Banking achieves a closing of $75M for its second gender lens investment fund, [Women's World Banking Capital Partners II](https://www.convergence.finance/design-funding/grant-portfolio/5CSvs9Xs76MgQygE2cOke2/view?utm_source=Convergence&utm_medium=website&utm_campaign=WWBII-75Close "Women's World Banking Capital Partners II"). 

Convergence’s grant was used to design Fund II. The $100 million fund aims to improve women’s financial inclusion through a blended approach, by leveraging concessional equity to attract commercial investors to invest in women-focused financial services providers in emerging markets.

Currently, Convergence is accepting applications until June 1 for its [Asia Natural Capital Design Funding Window](https://www.convergence.finance/design-funding/open-window/asia-natural-capital-open-window?utm_source=Convergence&utm_medium=website&utm_campaign=WWBII-75Close "Asia Natural Capital Design Funding Window") and until August 10 for its [Indo-Pacific Design Funding Window](https://www.convergence.finance/design-funding/open-window/indo-pacific-open-window?utm_source=Convergence&utm_medium=website&utm_campaign=WWBII-75Close "Indo-Pacific Design Funding Window") for the design and launch of catalytic blended finance solutions in certain countries in the Indo-Pacific region focused on sustainable and resilient infrastructure and gender equality.

*For more information, contact us at comms@convergence.finance. *

Convergence 2018 Design Funding Grantee #DesignFunding Grantee Women's World Banking achieves a closing of $75M for WWB Capital Partners II.

WWB Capital Partners II Achieves Closing at $75M

Women’s World Banking Capital Partners II Achieves Closing at $75M

*Originally published in [CFI.co](https://issuu.com/cfi.co/docs/cfi.co_spring_2020_online/24 "CFI Spring 2020 Issue"), Spring 2020 Issue. *

__By Joan Larrea, CEO of Convergence Blended Finance, and
Laura Sennett, Policy Specialist with the United Nations Capital Development Fund__


In December of 2015, the global news website, Quartz, published a piece entitled “Both Venture Capitalists and Banks are Betting on Blockchain.” In the roughly five years since this piece was posted, the debate over blockchain persists—whether it is hope or hype, future or fraud, promising and scalable or inefficient and forgettable. What has driven this intense debate is the contention that blockchain is more than merely an innovative technology—that it represents a “game-changer” in how we transfer data, conduct transactions or simply share information. 

Perhaps the closest analogy in the development finance space involves blended finance, which the World Bank defines as “Blended finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in sustainable development.” While the discussion surrounding blended finance is not as heated as the debate over blockchain, the subject of blended finance has similarly taken over much of the conversation space in the area of development finance. And like blockchain, what drives the blended finance conversation is the contention that it represents a game-changer. In this case, a game changer in its potential to catalyze private capital towards investments that would otherwise be overlooked—namely investments in developing countries generally and least developed countries (LDCs) in particular—delivering on both return-on-investment and the development impact that defines the Sustainable Development Goals (SDGs) agenda.

On the basis of existing results, however, the skeptics of blended finance have more to hang their hat on than the believers when looking at its ability to drive finance to the places hardest to reach. UNCDF and Convergence partnered on a report in 2018, “Blended Finance in the Least Developed Countries 2018,” which detailed the state of blended finance in the context of LDC transactions. We found that merely 7% of the total private capital mobilized by official development finance globally over the 2012-2015 period benefited LDCs, according to OECD data. (This is not necessarily ‘underweighting’ relative to the size of their economies, though it is small relative to the amount of official development assistance (ODA) received by LDCs.) In the report “The State of Blended Finance 2019,” published by Convergence, the percentage of transactions in low income countries that were blended finance in nature fell significantly; from 43% for the 2010-2012 period to 26% for the 2016-2018 period. This reality exists within a context where ODA is at best stagnant, and at worst is avoiding the areas where it is needed the most. The OECD reported last year that ODA dropped by almost 3% in 2018, with a declining share going to the neediest countries. Overall, the investment needs for LDCs to achieve the SDGs is three times the existing level of total capital investment into LDCs, according to the UN Conference on Trade and Development (UNCTAD).

But none of this means that it is time to place blended finance in the category of “hype” and look for other solutions. One of the most important things to remember is that blended finance, particularly in the development context, is still in its early days. Until the Addis Ababa Action Agenda—the international conference held in 2015 that laid out the foundation for SDG financing—there were practically no communities of practice or profound contemplation on the subject of blended finance and sustainable development. Now, that we have had five years to consider blended finance’s role in sustainable development, there are a few new strategies that both donors and investors can consider when pursuing blended finance solutions to deliver sustainable development to the areas that need it most. 

__Taking a Portfolio Approach __


Theoretically, blended finance is an attractive proposition. Concessional capital from a government or philanthropic organization can absorb the early losses tied to risky investments, thus making the risk-adjusted return on the riskier investments more palatable to investors with large amounts of capital—including institutional investors and pension funds. And while these sources of capital investment should be targeted for development-oriented investments, it does not mean that blended finance is always the best solution. 

One reason is the size of the transactions in developing countries and LDCs. In many instances, the transaction size is simply not big enough for traditional investors, meaning that executing an investment would simply not make business sense relative to the costs. Separately, these groups of investors often lack the boots on the ground in, or deep knowledge of, developing and LDC markets. So even if the cost of the transactions were not prohibitive, the perceived risk of the investment—just as often as the actual risk—can still prevent the unlocking of commercial capital. 

This does not mean that blended finance can never be used for investments in developing and least developed countries; and of course, we should do all we can to help investors separate the perceived risks of investing in these markets from the actual risk. There is also scope for financial engineering to deliver scale and reduced risk, for example by blending within large investment funds whose money goes down either directly into small transactions or into smaller, lower cost, and more nimble local funds. But donors need to accept that blended finance is not always going to be the best solution to finance a given transaction in these geographies. And in a context where ODA is an ever finite, if not shrinking resource, donors would be better served if they adopted a portfolio approach towards blended finance transactions. 

Such an approach calls on donors to assess their development projects in the context of the portfolio as a whole, not as a set of disconnected, individual investments. More to the point, it means lining up projects and strategically deploying ODA in a holistic fashion. A portfolio approach involves concentrating your ODA on the riskiest investments and preserving your blended finance deals for those projects that are a bit more palatable. Despite the downward trend of ODA, the fact that ODA can be deployed as purely concessional capital gives it an essential and irreplaceable purpose. Deploying more ODA towards a very risky investment, versus less ODA in the hope of unlocking private capital, can be the best way to use those precious funds in the most optimal way possible. 

In essence, this is a Ricardian argument. All of us remember the Ricardian concept of comparative advantage. When parties trade in goods or services on the basis of what each party is able to produce most effectively, the resulting efficiency produces an all-in economic gain. Likewise, donors should probably not be trying to induce private sector investment in the most extreme of situations where they, and only they, have the type of capital that can enter these situations.

__Communities of Practice__


The concept of blended finance is nothing new. Investment transactions of this nature have been around for at least 50 years, even if we did not call it blended finance. But today, while blended finance is increasingly becoming a tool of development finance, communities of practice only recently emerged surrounding it. The easiest proof is the fact that there are still varying definitions of what blended finance is. At a practical level, this means that field has not yet truly leveraged those actors with specific capabilities in blended finance to ensure that they apply their skills and capital in a tailored, impactful way. 

Fortunately, more and more official donors are looking to blended finance to drive impact. As sub-sets of donors emerge with specific interests within blended finance, they need to be able to easily identify blended finance structures and transactions that fit with their specific comparative advantages —whether on the basis of instrument used, geographic area or region, an investment sector, or a development theme, such as scale, LDCs, or gender. 

For example, institutions such as Sida have an edge in the issuance of guarantees in complex, structured transactions such as the IFC Managed Co-Lending Portfolio Program. Others have strong institutional connections to the host governments where they work. The Millennium Challenge Corporation, for instance, operates through compacts with host governments that allow it to push for investment environment changes that facilitate the major infrastructure projects it supports. Leveraging comparative advantage in this space will go a long way towards ensuring that the right blended finance transactions are being executed, in the right places, in the right ways.

__Do Not Overlook Local Capital__


International capital markets would seem to offer some solutions for those in the development finance space seeking to mobilize additional money into the SDGs. The trillions it would take to close the annual SDG financing gap for developing countries is still a fraction of the global financial assets that are traded on a daily basis. But this capital is also very difficult to access for riskier investments in developing countries and LDCs. Institutional capital of this nature is looking for scale, predictable returns, replicable vehicles, and oft-invested markets. 

This does not mean ignoring such markets, but it does mean not overlooking local capital markets. To be clear, many developing countries and LDCs simply do not have developed local capital markets. But where there are local capital actors, they may very well represent the appropriate sources of capital for a blended finance transaction. These sources of capital are often investing in safer bets, notably government bonds. So, a blended finance transaction with its first-loss cushion involving a local project can be quite suitable for a local bank to invest in. In addition, local capital can be deployed without incurring any foreign exchange risk.

One particular kind of investment where this can be impactful involves small and medium-sized enterprises (SMEs), specifically in LDCs. For SMEs in these markets to scale, their capital needs are typically between USD 50,000 and USD 2 million. Of course, it doesn’t make sense to blend USD 50,000 at a time, which is why many blended finance structures designed to invest in SMEs, typically blend different forms of capital in an intermediate vessel first (e.g. a financing facility or fund), which then makes smaller investments into SMEs. A good example is [Aceli Africa](https://www.convergence.finance/news-and-events/news/JQ6DdyjZd5pLdwwfiX3cz/view "Aceli Africa"), a financing facility designed to improve local lending to agricultural SMEs in Africa. They intend to do this by offering financial institutions: 1) cash incentive payments to defray the high operating costs associated with underwriting loans to new borrowers; and 2) a risk-sharing mechanism to reduce lenders’ exposure when serving high-impact segments that are higher risk, such as SMEs working in less formal food crop value chains. 

__Reverse Engineer__


Between the SDGs becoming mainstream and the increasing awareness of the impact investment market—the Global Impact Investors Network estimates the size of the global impact investing market at just over USD 500 billion, the desire for investment tools and products that provide return on investment and SDG impact is only growing. But to better entice the private sector, it’s critical for donors who are engaged in blended finance to adapt their products to the needs of the private sector. They need to look first at the type of investor they need to energize, understand the constraints on that investor type, and then mold, or reverse engineer, their own offering to those commercial requirements. At present, donors mostly have a fixed set of products and it falls to the private sector investor to figure out how and whether to use them.

We are already seeing this kind of engineering in the blended finance space. UNCDF has been involved in two blended finance vehicles designed to invest in SDG-oriented projects in developing and least developed countries. One vehicle—the BUILD Fund—focuses on capitalizing early stage companies and SMEs in LDCs. A separate vehicle—the International Municipal Investment Fund (IMIF), managed by the infrastructure investment and global asset manager, Meridiam; and created by UNCDF, United Cities and Local Governments and the Global Fund for Cities Development—is a bespoke fund designed to focus exclusively on supporting cities and local governments; notably municipalities in developing countries, including the least-developed countries. Both funds rely on first loss tranches to catalyze commercial capital into the mezzanine and senior tranches, which will be protected from early losses.  

Blended finance is, by no means, the panacea to achieve the SDGs. But there is no path to sustainable development reaching the places with the greatest development needs without private capital, which will not be accessible unless an array of game changing tools are deployed. Blended finance can be one of those game changing tools, but only if it is utilized it in a game changing fashion. With 10 years to go until the 2030 deadline of the SDGs, there is little time to waste. 


Joan Larrea, CEO of Convergence, and Laura Sennett, policy specialist with the UNCDF, highlight how blended finance can catalyze private capital towards investments that would otherwise be overlooked in lesser developed countries.

Getting the Right Blend in Game-Changing Finance

After 2 years of development, U.S. International Development Finance Corporation (DFC) emerged in January as America’s development bank to advance key development and infrastructure projects in developing countries, replacing the Overseas Private Investment Corporation (OPIC) and USAID’s Development Credit Authority (DCA). DFC was created as a result of the Better Utilization of Investments Leading to Development (BUILD) Act—landmark bipartisan legislation signed into law in October 2018. With increased capacity and capabilities, DFC has expanded authority to unlock and mobilize increased private capital to invest in development projects in priority regions such as the Indo-Pacific and Sub-Saharan Africa. 

This month, we connected with DFC’s Dia Martin, Managing Director on the Social Enterprise Finance team where she leads the [Portfolio for Impact and Innovation Program](https://www.dfc.gov/what-we-offer-our-products/portfolio-impact "Portfolio for Impact and Innovation Program") (referred to as PI²), to learn more about DFC, its priorities, COVID-19 response, and plans to advance blended finance solutions to advance global development. 


## How has COVID-19 impacted DFC? Have priorities shifted? 

We have been actively engaging with our existing clients to mitigate the impact of the pandemic on their businesses and long-term development impact. At the same time, we are prioritizing new projects to inject liquidity into markets and help developing countries bolster their health services and resilience. For example, DFC is working with several banking clients to establish liquidity facilities to support businesses, financial institutions, and individuals. Through the [*2X Women’s Initiative*](https://www.dfc.gov/our-impact-priorities/2x-womens-initiative "2x Women's Initiative"), we are also continuing to prioritize projects that economically empower women, who are often disproportionately impacted by crises, especially when they seek access to capital. DFC is also a part of the DFI Alliance—the DFIs of 16 OECD countries, including DFC—and we are working closely with the DFI Alliance on key health and economic investments, and are focused on shortening the time it takes to complete transactions. 

Under normal circumstances, DFC’s due diligence process includes field visits to assess operations and impact in action. To adapt to new circumstances, we are conducting virtual due diligence through video conferencing. Additionally, we’re enhancing our collaboration with other investors to share information and analysis, enabling us to conduct due diligence more efficiently and effectively while operating in a remote environment.



## What enables DFC to have greater flexibility to support investments in low-income and lower middle-income developing countries?

We were able to build on nearly 50 years of experience of OPIC, and so, I think there are a few developments that emerged:

- __We have increased our capacity.__ We went from an organization that had a $29B outstanding portfolio limit under OPIC, where we were at $23B and coming up against our limit. Now we have a $60B cap, giving us a lot more room to grow and have an impact.
- __We have increased our toolkit.__ Previously, we could mainly provide debt, and there are many different debt financing structures that are highly developmental, but it’s not always the right choice or the right tool. Now, DFC is equipped to provide equity, technical assistance or grants, and we have extended our capacity within debt financing to look at local currency lending. 
- __We have prioritized low-income and lower middle-income countries.__ DFC is focused on increasing investment in low- and lower middle-income countries to support development in energy, healthcare, critical infrastructure, and technology, with women’s empowerment at its core. Women’s empowerment is written into the legislation for the creation of DFC, so it is in fact core to our design and mandate. In February, we also welcomed our first Chief Development Officer, Andrew Herscowitz, who looks at development as the clear goal at our agency. 
- __We have a new way to score projects—it’s our IQ Assessment.__ The IQ framework looks at impact outcome across a number of different components including innovation, inclusion, and depth of reach. For each individual project, using IQ, the Office of Development Policy assigns a score to determine how developmental a project is expected to be and has been to date. 
- __Our core development initiatives are even more central to the agency.__ These initiatives include DFC’s 2X Women’s Initiative, PI², which is focused on development and innovation for early-stage businesses, and our regional initiatives across Latin America, Sub-Saharan Africa, and the Indo-Pacific. You can see us at the forefront of this narrative with [Prosper Africa](https://www.trade.gov/prosper-africa-about-us "Prosper Africa"), which is a new United States Government (USG) initiative with our CEO at the helm. 
- __We are taking a whole-of-government partnership approach.__ This is an effort to build efficiency across USG, so we are working more thoughtfully and collaboratively with our sister agencies like USAID and Millennium Challenge Corporation (MCC). DFC also includes a lot of individuals with USAID experience and connections, so we are working much more closely with USAID missions all over the world.  



## How will DCA work under DFC?

The ‘Mission Transaction Unit’ (MTU) at DFC now comprises the DCA team, housed within the Office of Development Credit. MTU is organized by region not sector and has about 20 staff members which include investment officers, relationship managers, as well administration and compliance staff.  We currently have three regional teams that cover Africa; Asia, Middle East, and North Africa; and Latin America and Eastern Europe. The team continues to work very closely with USAID’s missions on both portfolio management and origination. 

Guarantee products are the same as what DCA previously offered, but this division now has access to the broader range of products within DFC’s toolkit, including the products that were brought over from USAID through DCA. Guarantees can be provided on a stand-alone basis or along with other instruments or investments made by DFC. It is not conditional. Everything is available for our clients. 



## Can you tell us more about the Portfolio for Impact and Innovation (PI²)? How long has this program been in operation?

The Portfolio for Impact and Innovation or PI², as we call it, launched in 2014 under OPIC and started out as the Portfolio for Impact. The program was over $100M with commitments across multiple sectors. Similar to the way we want to amplify and expand the toolkit of DFC, this program now has the entire toolkit of DFC, including grants, equity or debt, and the ability to focus on individual direct investments in companies as well as funds. 

We also want to take this program to the next level. With that drive, we’re in the process of creating an innovation lab to develop and create new ideas that we think will catalyze development even further. This initiative serves as a great laboratory to build companies that are able to catalyze future private investments, or to go on and be larger deals for DFC. A really great example is [Varthana](https://www.convergence.finance/deal/a0337000008gKmqAAE/view "Varthana"), hot off the press. Varthana is a non-bank financial company that looks to support private schools for low- and middle-income students in India. We provided a $5M guarantee under PI² in 2015. It was one of the first deals we did under the program and was highly successful. Following our loan, Varthana went on to mobilize over 10x in additional capital after the first guarantee under OPIC. Varthana then came back to us for a loan of $15M which we recently committed and closed this year. I think that’s a perfect example of how PI² could be a first step or pilot ground to support larger scaling development projects.



## Could you share a couple of blended finance examples from this portfolio?

The first Development Impact Bond (DIB) that OPIC invested in was done under the blended finance model where we provided $1.75M in financing alongside $250,000 from Netri Foundation to the Magrabi ICO-Cameroon Eye Institute, a cataract hospital in Cameroon. I think this is a perfect example of blending finance, where we came in as an investor to provide financing for capital expenditures and working capital, alongside the Conrad Hilton Foundation, the Fred Hollows Foundation, and Sightsavers, who are the outcome funders responsible for repayment based on the achievement of target outcomes (e.g. 50% of patients have successful surgeries). We also had the African Eye Foundation involved, as they were the entity that created the hospital. 

And then, our [MOMs (Maternal Outcomes Matter)](https://www.dfc.gov/media/opic-press-releases/opic-announces-collaboration-usaid-merck-and-credit-suisse-improve "MOMs Initiative") Initiative exemplifies the breadth of possibility available through blended finance when you have willing partners. We started this initiative with Merck for Mothers, a non-profit related to Merck Pharmaceuticals, as well as USAID, our sister agency, and Credit Suisse. Together, we’re working to mobilize at least $50M to support improved outcomes in maternal and child healthcare. And, what we are seeing as part of this initiative is a real breadth of projects that we can support in this space. Under the MOMs partnership, deals are considered by each partner on an individual basis, which allows flexibility to our MOMs partners to engage in a way that is familiar to them and ultimately provides more opportunity to address the needs of each client. One of the first projects that we have discussed supporting is LifeBank, which is based in Nigeria and provides lifesaving oxygen and blood to hospitals across Nigeria.



## Have there been any significant changes since the transition into DFC, and is there a change that excites you most?

I think it’s been a real burst of energy for PI², given the expanded product offering, which means we have financing to fit multiple types of companies. And I also think the innovation lab is a real boost. So, it’s not just transactional but allows us the opportunity to be strategic in the way we make investments and plan for the future for PI². 

What excites me the most is the energy and momentum that take form when you start a new enterprise or when you start a new agency. There is an increased spirit for creation. As a new agency—I think we are a little over 3 months old today—it’s a great place and time for us to be creative and bring new ideas to the table to do things that we might have not thought possible, or may have been a little bit reluctant to do in the past. I think that’s not only true for PI² but true for the agency at large, especially when it comes to our new products like our equity and technical assistance.




Convergence recently spoke with DFC’s Dia Martin to learn more about DFC, its priorities, COVID-19 response, and plans to advance blended finance solutions for development.

Member Spotlight with Dia Martin from DFC



[https://convergence-finance-prod-public.s3.amazonaws.com/webinars/Mobilizing+Private+Investment+at+Scale+in+Blended+Finance.mp4](https://convergence-finance-prod-public.s3.amazonaws.com/webinars/Mobilizing+Private+Investment+at+Scale+in+Blended+Finance.mp4)

Last week, Convergence and the DFID Impact Programme co-hosted a webinar to share findings from our latest report, [How to Mobilize Private Investment at Scale in Blended Finance](https://www.convergence.finance/resource/3cpgfofIUn2QY8rFEV2IFt/view?utm_source=Webinar%20Blog&utm_medium=website&utm_campaign=MobilizingPSRR "How to Mobilize Private Investment at Scale in Blended Finance"). The webinar focused on key takeaways based on conversations with over 20 private investors for building a more efficient and effective blended finance market. The online event brought forward perspectives from Credit Suisse, The GIIN, and Moody’s Investor Service. Here’s a snapshot of the key findings and recommendations shared during the webinar and insights from our guest speakers to advance the market.

__Convergence maintains that with only 10 years left to achieve the SDGs, current blended finance flows (~US$15 billion annually) will not be sufficient in mobilizing the “billions to trillions” needed to meet the SDG financing gap by 2030. The development community must move beyond rhetoric to mobilize private investment at scale. __






## So, what do private investors recommend to scale the blended finance market?




__Portfolio approaches are preferred to stand-alone projects:__ Private investors report that portfolio approaches are more effective for three key reasons: i) only a small number of stand-alone projects are large enough, ii) diversification across projects reduces risk for investors, and iii) development organizations have a long project approval cycle – portfolio approaches provide larger investment sizes, therefore reducing the relatively high transaction costs. 

As highlighted during our panel discussion, the “bespoke” nature of projects can be a challenge for financial institutions like Credit Suisse when investing in blended finance products. Financing collective structures (such as a fund) that can invest in a number of projects provide a solution to the challenges associated with standalone projects.

__Standardized investments should be pursued aggressively:__ Consistently, private investors express greater need for more simplified and standardized investment assets. Investors recommend development organizations shift away from creating new innovative solutions towards scaling up and refining existing solutions. In addition, blended finance practitioners should focus on creating more assets that are investment-grade (rated or implied) and are publicly traded. 

To this end, DFID has [partnered](https://www.gov.uk/government/news/uk-government-supporting-city-of-london-to-mobilise-billions-of-pounds-of-investment-to-transform-africa "DFID Supports London") with the London Stock Exchange (LSE) in an effort to increase the number of assets in emerging markets, particularly from Africa, that are listed on the LSE. This is a positive signal for scaling institutional investment into emerging markets and will address a number of barriers faced by private investors, by: i) increasing liquidity, ii) providing greater transparency, and iii) building a track record for assets in emerging markets. 

[Moody’s report](https://www.moodys.com/research/Moodys-Sustainable-finance-innovation-to-boost-private-investment-in-emerging--PBC_1222670?WT.mc_id=AM%7ERmluYW56ZW4ubmV0X1JTQl9SYXRpbmdzX05ld3NfTm9fVHJhbnNsYXRpb25z%7E20200406_PBC_1222670 "Moody's Sustainable Finance Innovation Report") on blended finance in emerging countries explores how more standardized investment structures such as securitizations, which use a portfolio approach, have allowed for scale while diversifying assets for private investors. In 2018 the AfDB carried out a synthetic securitization of a portion of its private loan portfolio, totaling $1 billion, allowing institutional investors to gain access to a new asset class. By introducing multiple tranches including a first-loss tier retained by AfDB, [Room2Run](https://www.afdb.org/en/news-and-events/african-development-bank-and-partners-innovative-room2run-securitization-will-be-a-model-for-global-lenders-18571 "Room2Run") was able to achieve an A rating on its senior tranche. Such structures demonstrate how blended finance can better attract private investors and achieve investment grade ratings. 

__The gap between development organizations and private investors needs to be narrowed:__ Private investors are a diverse group, sharing vastly different motivations and constraints when it comes to achieving the SDGs in developing countries. While they are increasingly allocating their capital to a range of different investment strategies with beyond financial returns, including Responsible Investment, Sustainable Finance, ESG Investing, and Impact Investing, private investors cannot sacrifice financial returns. Likewise, the landscape of development organizations allocating concessional capital is fragmented, making it challenging for private investors to know the priorities, investment processes and types of capital provided by donors. To achieve its full potential, blended finance practitioners should align structures with investment strategies already being pursued by the private sector. To do this, better communication and a deeper understanding is needed between the donor community and private investors.

Convergence and DFID have recently established a Scale Working Group, convening over 16 donors in an effort to better coordinate activities across the development community and focus on financing scale blended finance initiatives. Recently, the GIIN has also created a Knowledge Hub, with the goal of convening quarterly meetings with its members around specific themes, including blended finance and gender. Such efforts will support better communication across donors and investors and provide some much-needed coordination in the market. 

__To read more key findings on how to scale private investment in blended finance, please read [our latest report](https://www.convergence.finance/resource/3cpgfofIUn2QY8rFEV2IFt/view?utm_source=Webinar%20Blog&utm_medium=website&utm_campaign=MobilizingPSRR "Mobilizing Private Investment at Scale in Blended Finance").__ Check out our other [resources](https://www.convergence.finance/resource "Convergence Resources") and [upcoming virtual trainings](https://www.convergence.finance/training "Convergence Trainings") next. 

A snapshot of insights, recommendations and ideas shared during our May 12th webinar on How to Mobilize Private Investment at Scale in Blended Finance, our latest research report.