Blended finance

In the second of two articles looking at the capacity building challenge, we talk to BlueOrchard and Earth Capital Limited about their approach to providing support to investees.

In the first of two articles on the topic of capacity building, we look at how impact investors are going beyond just injecting capital to providing the support portfolio companies need for their long-term sustainability.

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.

Spark+, a $64m blended finance fund, invests in scalable companies offering clean cooking energy solutions to the mass market in sub-Saharan Africa.

The Green Earth Impact Fund is seeking to attract up to $250m of investment in fund aiming to close the public-private financing gap for sustainable investments. 

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 Urban Resilience Fund is a multi-vehicle blended finance initiative, backed by DFIs and other investors, to support climate-focused projects in sub-Saharan Africa.

Investors commit €36m to back businesses providing affordable, safe drinking water to underserved populations mainly in Africa and Asia.

The initiative aims to change the financial sector’s perception of water: not as an isolated sector but as an entry-point for multi-sector, local and regional impact investment opportunities.

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.