Private debt investments in emerging markets are still considered high risk by some institutional investors, but blended finance solutions and other structures are attracting the interest of some of Europe’s largest pension funds.
A ‘blended government’ approach based on public-private partnerships can help overcome the shortcomings of the ‘vending-machine government’ model, according to the authors of ‘Bridgebuilders’, reviewed by Christopher Walker.
The Article 9 fund will invest primarily in Africa and Asia. US International Development Finance Corporation, Swedfund, Swedish International Development Cooperation Agency and other partners will provide capital and guarantees.
Green guarantees are a key component of the EU’s drive to support energy transition and climate adaption in developing countries. A large share of the investment programmes will be implemented by DFIs, as FMO’s David Kuijper explains.