Sydney, Australia, 26 March 2026 - At the Impact Investment Summit Asia Pacific, Convergence Blended Finance and the Australian Department of Foreign Affairs and Trade (DFAT) announce the inaugural cohort of the Indo-Pacific NGO Blended Finance Accelerator.
The four NGOs will receive catalytic grant funding and acceleration support to design, launch, and scale blended finance solutions that mobilize private capital for climate action and gender equality across the Indo-Pacific.
The Indo-Pacific NGO Blended Finance Accelerator is a five-year initiative funded by DFAT and implemented by Convergence Blended Finance that aims to strengthen the role of NGOs in blended finance.
With over 80 applications received, the response underscores the growing ambition of NGOs to participate in blended finance transactions. The demand comes amid persistent financing gaps and donor funding volatility, particularly in underserved and climate-vulnerable markets. Over 70% of applicants were local NGOs, reflecting strong local ownership and a deep understanding of local contexts. Learn more about the selected semi-finalists here.
NGOs are increasingly exploring blended finance to address the growing gap between available donor funding and the scale of development needs. As many organizations reach a stage where their interventions demonstrate impact but require additional capital to scale, blended finance presents an opportunity to mobilize private investment alongside traditional funding sources. With their deep experience implementing programs and delivering localized impact, NGOs are well positioned to help translate blended finance into meaningful development outcomes.
Convergence Market Data indicates that only 17% of all blended finance transactions have an NGO participating in developing and implementing the transaction, highlighting a clear gap between interest and participation. This can be attributed to barriers NGOs often face when engaging in blended finance, such as limited financial structuring expertise, regulatory hurdles, and challenges securing organizational buy-in.
The Accelerator aims to close this gap by equipping NGOs with the tools and support they need to design, pilot, and scale innovative projects, as impact managers, technical assistance providers and, where suitable, fund managers.
This inaugural cohort represents a diverse group of NGOs working across the Indo-Pacific to develop blended finance solutions that address critical development challenges while creating new opportunities for private sector investment.
Introducing the Awardees: Good Return is awarded an expansion grant to support the scale-up of the Good Return Impact Investment Fund II, an evergreen USD 6.9 million blended finance facility supporting underserved micro, small, and medium enterprises (MSMEs) across the Asia-Pacific. The fund will partner with financial service providers to expand access to finance for women-led and climate-resilient businesses, using guarantees and lending facilities to catalyze commercial capital. The vehicle aims to support ~5,000 MSMEs over 10 years, with a minimum target of ~70% women-led or women-owned enterprises. The Accelerator will support the General Partner’s first-loss commitment to the fund to help catalyze additional investors, while also strengthening fund management, impact and gender monitoring, and the responsible scale-up of the facility.
Oxfam Australi a and OBOR Management Co. Ltd., are awarded a scoping grant to design the Equi-Green Fund, a USD 20 million blended finance vehicle investing in climate-resilient and gender-responsive small and medium enterprises across Cambodia, Indonesia, and Timor-Leste. The fund will provide early-stage venture capital and technical assistance to enterprises in sectors such as renewable energy, circular economy, and climate-smart agriculture, addressing the region’s “missing middle” financing gap. The Accelerator will support validation of underlying assumptions, stress test the financial model and capital structure, fundraising, and securing anchor investor commitments.
Save the Children Global Ventures is awarded a proof-of-concept grant to design the Asia Healthcare Fund, a USD 30 to 50 million blended finance vehicle investing in innovative healthcare ventures serving women and children across Southeast Asia and Pacific Island nations. The Fund will provide early- and growth-stage capital to scalable health solutions improving access to diagnostics, nutrition, and community-based care. The fund will aim to improve the health and nutrition of 5 million children and train over 100,000 women health workers, especially by leveraging Save the Children’s regional network and expertise. The Accelerator will help the fund complete key design activities, including setting up the legal structure, completing the operational and governance mechanism, identifying the investment pipeline, and securing investor commitments.
Xpand Foundation, Foundation Rai Matak and Pollination are awarded a proof-of-concept grant to design a USD 20 to 25 million blended finance platform to scale community-led agroforestry across Timor-Leste. The platform will provide upfront financing to local partners supporting smallholder farmers to plant and maintain trees on their land. This will create livelihood opportunities for 20,000 farmers, restoring degraded landscapes through the planting of 10 million trees. The platform will generate an estimated 15 - 25 million tonnes of verified CO₂ carbon credits over the life of the program while strengthening rural incomes and inclusion.
Following the successful completion of Cycle 1, the Indo Pacific NGO Accelerator will launch its second cycle on 1st June 2026.
Quotes Attributable to Minister for Foreign Affairs, Penny Wong:
“These grants support NGOs to design and scale blended finance solutions to unlock private capital and support a more resilient Indo-Pacific.”
“These initiatives show how Australian NGOs can mobilize investment, accelerate gender and climate outcomes, and contribute to a more stable and prosperous region.”
“We’re proud to support models that build economic resilience, deepen Australia’s partnerships, and deliver lasting benefits for communities in our region.”
Quotes Attributable to Minister for International Development, Anne Aly:
“The grantees announced today represent NGOs working at the frontier of development finance.” “They are pioneering innovative solutions to create jobs, boost prosperity, and support economic resilience across our region.”
“Australia is proud to support the work of NGOs to deliver real, lasting benefits to women, children and the environment through blended finance structures.”
Quote attributable to CEO of Convergence, Joan Larrea:
“Blended finance needs both scale and credibility. While financial actors are well along on designing large and standard structures, they can run into difficulty with local origination and designing for impact. NGOs and their expertise are critical to the market’s evolution, given their proximity to communities and their specialized knowledge.”
Quote attributable to Senior Director of Convergence’s Blended Finance Accelerator, Leah Pedersen:
“This Accelerator is designed to build the practical skills and track-record NGOs need to develop blended finance vehicles, from structuring transactions to fundraising to capital deployment. By supporting a diverse cohort of NGOs, we aim to build a pipeline of solutions for replication and scale-up benefiting communities across the region.”
About Convergence and the Blended Finance Accelerator
Convergence is the global network for blended finance. Convergence’s Blended Finance Accelerator supports blended finance practitioners with design grants, acceleration support, and market intelligence to scope, structure, and launch new blended finance solutions that unlock commercial investment to accelerate sustainable development in emerging markets.
On top of market acceleration through its Blended Finance Accelerator, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 160 public, private, and philanthropic investors as well as sponsors of transactions and funds.
About the Australian Department of Foreign Affairs and Trade
The Australian Department of Foreign Affairs and Trade promotes and protects Australia’s international interests to support our security and prosperity. We work with international partners and other countries to tackle global challenges, increase trade and investment opportunities, protect international rules, keep our region stable and help Australians overseas.
Media Contact
Sijia Yi
Head of Communications
Convergence Blended Finance
[email protected]
