Deal Connect: December 2025

__Tuesday, December 9, 2025, 9:00AM - 10:00AM ET__

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Join Convergence for an informative webinar that will connect you to a selection of blended finance investment opportunities in emerging markets. During this interactive session, Convergence members will share details about their investment opportunities that are listed on our live deal platform. This is a great opportunity to explore new and unique transactions and learn from developments in the broader blended finance ecosystem.

During the session, we will present two opportunities:

__Mirova Sustainable Land Fund 2__ 
Mirova’s Sustainable Land Fund 2 targets sustainable agriculture and forestry. It provides long-term financing (debt/equity) for projects promoting sustainable land use, especially through regenerative agriculture and agroforestry. Building on the success of the Land Degradation Neutrality Fund managed by Mirova, it leverages Mirova’s expertise in natural capital. The fund primarily targets emerging countries, with an existing project pipeline in Africa, Asia, and Latin America.

 

__Catalyst Fund Resilience I__ 
Catalyst Fund Resilience I is a blended equity fund targeting pan-African early-stage tech ventures enabling climate adaptation and resilience. The fund combines capital and hands-on venture building support to scale startups to success, building on its track record with two prior accelerator funds.

This webinar series is exclusive to investors registered on the Convergence platform.

Join us for an informative webinar that will connect you to relevant blended finance investment opportunities in emerging markets.

Indo-Pacific NGO Blended Finance Accelerator: Information Session

__Thursday, November 13, 2025 at 2pm AEDT / 11am SGT__

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We invite you to join us virtually for an information session on the [Indo-Pacific NGO Blended Finance Accelerator](https://www.convergence.finance/accelerator/dfatngo). The Indo-Pacific NGO Blended Finance Accelerator is a partnership between the Australian Department of Foreign Affairs and Trade (DFAT) and Convergence Blended Finance. The accelerator will provide catalytic grant funding and acceleration support to NGOs that aim to design, launch, pilot, scale-up and expand the blended finance vehicles. Through the Accelerator, NGOs can access funding at different stages of developing a blended finance vehicle, from early scoping and feasibility studies to pilot transactions and expansion, while also benefiting from capacity building support from tailored curriculum, peer-to-peer learning opportunities, data and analytics, access to Convergence network of investors and other ecosystem players, and ongoing portfolio support and technical feedback to help design and scale investable vehicle for climate action and gender equality. The accelerator aims to support NGOs to create an investable pipeline of high-impact vehicles that unlock private capital for advancing climate action and gender equality across the Indo-Pacific region.

__Register for the webinar to:__ 
 
- Get an overview of the Indo-Pacific NGO Blended Finance Accelerator and how it supports NGOs in the region
- Hear directly from DFAT Australia on their vision and objectives for the program
- Gain insights from an NGO grantee on designing blended finance vehicles and mobilizing capital
- Understand the application process, including eligibility criteria and how proposals will be evaluated
- Ask your questions during a live Q&A and more!
 

__Who should join:__ 
- NGOs exploring or developing blended finance solutions targeting climate action and/or gender equality in the Indo-Pacific.
- NGO-affiliated impact investment arms and technical partners.
- Other ecosystem partners interested in blended finance collaborations with NGOs

The Indo-Pacific NGO Blended Finance Accelerator is now open, and the deadline to submit expression of interest is __November 18, 2025__. Visit [this page](https://www.convergence.finance/accelerator/dfatngo) to learn more and apply.

We invite you to join us virtually for an information session on the Indo-Pacific NGO Blended Finance Accelerator.

Info Session: Indo-Pacific NGO Blended Finance Accelerator

saopaulonetworking nov25 web v2

__Member Networking Breakfast in São Paulo, Friday, November 7, 9:00am - 11:00am BRT__

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Join Convergence and Latimpacto for a morning networking session with members and partners in São Paulo on November 7, 2025. Connect with impact investors, institutional investors, donors, development banks, and sponsors of blended finance deals. Attendees will have ample time to exchange ideas and discuss blended finance initiatives.

Registration is open on a first come first served basis.

Member Networking Breakfast in São Paulo

Join us for a networking breakfast in São Paulo.

Networking Event in São Paulo

COP30-DeRisking-Latam-Event

__Tuesday, November 4, 4:30pm BRT__

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Join Convergence alongside Howden, United Nations Environment Programme Finance Initiative, AXA, CAF - Development Bank of Latin America, and BNP Paribas for this COP30 side-event.

Climate finance in Latin America & Caribbean (LAC) has increased in recent years, but it is still insufficient to meet the region’s capex needs to achieve decarbonization goals. De-risking mechanisms and resources will be an instrumental measure for this climate capital mobilization, as their strategic use can reduce project-related risks, making investments more attractive and accessible to investors.

Different mechanisms can be leveraged when executing a de-risking strategy, and four case studies, brought by Convergence, AXA, CAF - Development bank of Latin America, BNP Paribas, will illustrate how these risks and instruments pragmatically materialize climate deals.

This event will serve as a private roundtable space for discussing de-risking strategies for climate financing through practical examples from regional peers, aiming to reinforce transition financing efforts among Latin America’s financial sector participants. A space for networking and a social reception will foster dialogue and serve as a closure of the session.

*Share your expression of interest (no later than Friday, 31st October) to attend this event. Please note that registration does not mean confirmation. A confirmation will be sent to your email with the exact address.*

De-Risking Latin America & Caribbean: Profiling effective solutions to finance the climate transition

Join us for a private roundtable event for discussing de-risking strategies for climate financing in LAC.

De-Risking Latin America & Caribbean

CBF-Forum-Launch-websitebanner

To celebrate its 10th anniversary, Convergence will host the first ever Global Blended Finance Forum in Washington, DC at the Fairmont Georgetown Hotel from November 3-5, 2025.

This first of its kind gathering will bring together a wide spectrum of blended finance practitioners to share insights, discuss market trends, and break down silos, with an aim towards defining the next decade of blended finance.

The Forum will offer a variety of programming focused on the most urgent blended finance issues including private sector and local capital mobilization, data transparency, and standardization. Attendees will also have the opportunity to participate in multiple networking opportunities designed to foster collaboration and inspire and galvanize them to shape the future of blended finance.

Convergence members get access to preferred pricing. Early bird member tickets are $500 (compared to $750 for non-members). To get the discounted rate, reach out to your relationship manager.

*Early bird registration is currently open. Follow the [event LinkedIn page](https://www.linkedin.com/showcase/global-blended-finance-forum/) for up to date information, including newly announced speakers, agenda items, and themes.*

Global Blended Finance Forum

To celebrate its 10th anniversary, Convergence will host the first ever Global Blended Finance Forum in Washington, DC from November 3-5, 2025.

Convergence Global Blended Finance Forum

sobf25 climate web v2

Join us virtually for the launch of our 2025 State of Climate Blended Finance report on __Monday, November 3 at 9:15AM ET__, where we will share data trends, insights, and recommendations from the report. This year’s report assesses the state of climate blended finance in light of the Fourth International Conference on Financing for Development held in Seville earlier this year, and sets out the key challenges and opportunities facing the market in the years ahead.

In addition to presenting highlights from the report, the virtual launch will also feature a panel discussion exploring how the market can address the critical challenges facing climate blended finance. 

The panel will include: 
__Joan Miquel Carrillo__, Blended Finance Principal Officer, IDB Invest 
__Tim Streeter__, Global Head of Investor Relations, Private Infrastructure Development Group 
__Elizabeth Beall__, Managing Director, Finance Earth 
__Luke Franson__, Director of Fund Management & FX/Treasury, Finance in Motion 

The 2025 State of Climate Blended Finance complements our 2025 State of Blended Finance, which covered the overall blended finance market and was released earlier this year.Explore the 2025 State of Blended Finance [here](https://www.convergence.finance/resource/state-of-blended-finance-2025/view).

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Read the 2025 State of Climate Blended Finance [here](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view).

Watch a recording of the launch below:
https://www.youtube.com/watch?v=0gTq8QAGf9c

2025 State of Climate Blended Finance Virtual Launch

Convergence is launching the 2025 State of Climate Blended Finance on Monday, November 3 at 9:15AM ET. This report, with a focus on climate, complements our 2025 State of Blended Finance which covered the overall blended finance market and was released earlier this year.

2025 State of Climate Blended Finance Launch

Blended Finance Training for Canadian Fund and Asset Managers (Toronto)

__Wednesday, October 15, 2025, 9:00AM - 12:00PM__

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(Le français suit/French follows) 
 

Convergence, with support from [Global Affairs Canada](https://www.international.gc.ca/global-affairs-affaires-mondiales/home-accueil.aspx?lang=eng), is proud to introduce a new skill-building initiative under its [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm). Blended finance—using catalytic capital from public or philanthropic sources to attract private sector investment—is a key approach to mobilizing investment in emerging markets and developing economies (EMDEs). This initiative aims to enhance the skills of Canadian fund and asset managers in designing and structuring blended finance vehicles for EMDEs, enabling both diversification and market-adjusted risk-return, while meeting the growing demand for sustainable investments.

This session will bring together participants from the Canadian sustainable finance space, equipping them with practical, hands-on knowledge through Convergence’s proprietary training materials and real-world case study presentations from leading fund and asset managers. It will also offer insights from mainstream asset managers and impact fund managers on scoping, launching, and deploying blended finance vehicles to attract concessional and commercial investors, thereby unlocking new opportunities and expanding their reach in EMDEs.

We will additionally be hosting a second standalone training in Montreal in early 2026, for those who may find that location more convenient.

*Registration is subject to pre-approval. You will be notified of your approval status shortly after submission.*

(FRANÇAIS/FRENCH)

Convergence, avec le soutien [Affaires mondiales Canada](https://www.international.gc.ca/global-affairs-affaires-mondiales/home-accueil.aspx?lang=eng), est fière de présenter une nouvelle initiative de renforcement des compétences dans le cadre de son programme [Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM)](https://www.convergence.finance/accelerator/a4fm). Le financement mixte, qui consiste à utiliser des capitaux catalytiques provenant de sources publiques ou philanthropiques pour attirer les investissements du secteur privé, est une approche clé pour mobiliser les investissements dans les marchés émergents et les économies en développement (EMDEs). Cette initiative vise à améliorer les compétences des gestionnaires de fonds et d'actifs canadiens dans la conception et la structuration de véhicules de financement mixte pour les EMDEs, permettant à la fois la diversification et un rapport risque-rendement ajusté au marché, tout en répondant à la demande croissante d'investissements durables.

Cette session réunira des participants issus du secteur canadien de la finance durable et leur permettra d'acquérir des connaissances pratiques grâce au matériel de formation exclusif de Convergence et à des présentations d'études de cas réels par des gestionnaires de fonds et d'actifs de premier plan. Elle offrira également des informations provenant de gestionnaires d'actifs traditionnels et de gestionnaires de fonds d'impact sur la définition, le lancement et le déploiement de véhicules de financement mixte afin d'attirer des investisseurs concessionnels et commerciaux, ouvrant ainsi de nouvelles opportunités et élargissant leur portée dans les EMDEs.

Nous organiserons également une deuxième formation indépendante à Montréal au début de l'année 2026, pour ceux qui trouveraient cet emplacement plus pratique.

*L'inscription est soumise à une pré-approbation. Vous serez informé de l'état de votre demande peu après l'avoir soumise.*

Join us for a training on blended finance for Canadian Fund and Asset Managers in Toronto.

Blended Finance Training for Canadian Fund & Asset Managers

Member Networking at the GIIN Investor Forum

__Tuesday, October 7, 2025, 6:30PM – 8:00PM CET, Berlin, Germany__

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Convergence invites you to our member networking reception on the sidelines of the GIIN Impact Forum in Berlin. Chat with other Convergence members, including impact investors, institutional investors, donors, development banks, and sponsors of blended finance deals. Join us to exchange ideas and discuss blended finance initiatives.

You do not need to be registered for the GIIN Impact Forum to attend our reception. Snacks and drinks will be served.

*Registration is on a first-come first-served basis, with a maximum of 2 people per organization.*

Convergence Member Networking in Berlin

Join us for a member networking event in Berlin.

Nordic Climate Dialogues 2025

__Wednesday, October 1, 2025 at 10:00–11:30 EEST__

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Join the discussion at Nordic Climate Dialogues 2025 on 1 October, the Nordic Development Fund (NDF)'s first-ever event for Nordic experts in the nexus of climate and development finance. The event will unpack bold climate solutions and explore how the Nordic region can come together and catalyse finance for real action.

The event brings together Nordic actors in the nexus of climate and development – high-level government representatives, financiers, strategic partners, think tanks, research institutions, and NGOs. Together with other Nordic actors, NDF will explore ways to mobilise financing at speed and scale, bring solutions to the table, and implement them.

Key topics include how Nordic countries and institutions can collaborate more effectively to mobilize climate finance, tangible ways to involve the private sector in adaptation in a meaningful way, and opportunities for collaboration in innovative finance, such as blended finance and concessional finance.

Join Convergence alongside the Nordic Development Fund (NDF) at the Nordic Climate Dialogues 2025 on 1 October, the NDF's first-ever event for Nordic experts in the nexus of climate and development finance.

Convergence's 2025 New York Climate Week Side Event

__Monday, September 22, 2025 at 8:30AM - 10:00AM ET__

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__This event is now full.__

Join us for Convergence's Member Breakfast & Networking in New York on the sidelines of Climate Week New York, hosted in partnership with Citi. 

The Convergence Market Insights team will deliver the latest briefing on the climate blended finance market, featuring an exclusive preview of the upcoming State of Blended Finance – Climate report, along with highlights from other recent and forthcoming climate publications in Convergence’s knowledge suite. Following the briefing, enjoy a dedicated hour of networking with the Convergence team and a global community of practitioners in blended finance—leaders collectively working to mobilize billions toward sustainable investment in emerging markets.

*All participants will be subject to a security pre-screening, and a valid government-issued ID will be required for entry. Registration will close on September 15.*

Convergence Member Breakfast & Networking in New York

Join us for Convergence’s Member Breakfast & Networking in New York, hosted in partnership with Citi.

Role of Public Development Banks & Domestic Financial Institutions in Blended Finance PPPs

__Thursday, September 18, 2025 at 2:30PM CET__

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__Information__ 
Join Convergence alongside the World Association of PPP Units & Professionals (WAPPP) for their 'Role of Public Development Banks & Domestic Financial Institutions in Blended Finance PPPs' webinar on September 18.

National Development Banks (NDBs) are key players in long-term infrastructure financing, especially in sectors like energy, transport, agriculture, and MSMEs—areas critical to green transitions.

Owned and mandated by governments, NDBs use public funds and mobilize private and international capital to support national development goals. Unlike commercial banks, they are not solely profit-driven, allowing them to offer long-term, concessional financing for projects that may be too risky for private investors.

With public guarantees and local currency lending, NDBs help reduce project risk and improve bankability. Their strong local presence, policy alignment, and streamlined processes make them well-suited to support smaller, impactful projects and close financing gaps at the local level.

The webinar will:
1. Provide an overview of National Development Banks’ instrumental role in blended financing of infrastructure and PPPs
2. Discuss the role of MDBs in supporting National Development Banks in mobilizing capital for infrastructure
3. Showcase example of blended finance structure with NDBs and domestic Financial Institutions
4. Discuss case studies using commercial and capital markets financial solutions

Join WAPPP for this session that will explore the role of MDBs in supporting National Development Banks in mobilizing capital for infrastructure, and showcase example of blended finance structure with NDBs and MDBs.

Role of Public Development Banks & Domestic FI

Consultation for Convergence-UNDP Blended Finance Framework

__Thursday, September 18, 2025 at 9:30AM-10:45AM SGT__

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Convergence and Singapore Sustainable Finance Association (SSFA) jointly invite you to attend a virtual consultation on Convergence's upcoming report, funded by the United Nations Development Programme, entitled Strategic Framework for Blended Finance: A framework for country-level blended finance ecosystem development in South and Southeast Asia.

By breaking down the enabling environment into six interdependent pillars, the framework goes beyond principles into implementation, providing policymakers and regulators with practical tools, reform pathways, and guidance. It offers not only the “what” of blended finance, but the “how” that can empower emerging markets to advance their own sustainable development agendas, attract investment at scale, and ensure those flows are directed toward their highest national priorities.

Convergence is seeking input on the development of this framework and would be grateful for your participation.

__Session Agenda:__ 
- 09:30 – 09:35: Welcome by SSFA – by Kavitha Menon, Director, SSFA
- 09:35 – 09:40: Opening Remarks – by Ritesh Thakkar, Senior Advisor and Head of Asia Pacific, Convergence
- 09:40 – 10:00: Presentation: Overview of 6 Pillars of Blended Finance Framework– by Robin Ivory, Manager, Convergence and Tony Deary, Director, GBRW Consulting/ Learning
- 10:00 - 10:45: Open Discussion and Feedback

Convergence invites you to attend a virtual consultation on Thursday, September 18, 2025 at 9:30-10:45am SGT on its upcoming report entitled Strategic Framework for Blended Finance: A framework for country-level blended finance ecosystem development in South and Southeast Asia.

*Washington, D.C., November 3, 2025* — Today, Convergence, the global network for blended finance, launches the State of Climate Blended Finance 2025.

The report finds that despite declining from a record high in 2023, the climate blended finance market remained steady in 2024, with the second-highest total in aggregate financing in the past decade, representing $15.5 billion mobilized across 84 deals.

There was a significant growth in private investor appetite in 2024. Institutional investors committed $1.6 billion into climate blended finance in 2024, a massive surge from just $2 million in 2022, while commercial banks contributed $2.4 billion. Local private actors, domiciled in emerging markets, are also playing a growing role in climate blended finance. The share of overall investments from local private actors rose from 17% in 2019-2021 to 29% in 2022-2024. Since 2022, private investors have committed $14.6 billion to climate blended finance transactions, representing 31% of total commitments over the past three years. This makes them the second largest source of capital to climate blended finance, however, these volumes are infinitesimal by private sector standards.

“Despite remaining steady, the market falls far short of the climate financing needs of developing countries, with only incremental growth where exponential growth is needed,” says Andrew Apampa, CFA, Associate Director of Market Insights. “The collision of diminishing foreign aid and the scale of climate financing required, make climate blended finance more critical than ever.”

Mitigation has dominated climate blended finance, accounting for 56% of deals and 64% of total flows from 2019 to 2024. Between 2023 and 2024 there was a sharp increase in private capital flows to mitigation, nearly doubling from $2.1 billion to $4.1 billion. Blended finance for adaptation still makes up the smallest share of the market, accounting for 19% of transactions and 13% of flows between 2019 and 2024. However, adaptation blended finance flows surpassed $2 billion in both 2023 and 2024, increasing from $2.1 billion to $2.4 billion, signaling stronger momentum.

Climate investments are increasingly concentrated in lower middle-income countries, while the share of financing in least developed countries (LDCs) has dropped. Climate blended finance activity in LDCs fell from 23% in 2023 to 5% in 2024, deals in lower-middle-income countries rose to 73% in 2024, from 62% in 2023. This movement to lower-middle income countries is reflected in the regions showing the most growth in blended finance in 2024: East Asia and the Pacific as well as Europe and Central Asia saw transactions increase by 77% ($1.3 billion to $5 billion) and 100% ($2.6 billion to $6.4 billion) from 2023 to 2024, respectively.

Financing to Ukraine makes up a significant portion of flows going into Europe and Central Asia, with nine deals totaling $1.4 billion, and placing Ukraine as the country with the second highest climate blended finance activity in 2024. Most of these deals were arrangements between the European Bank for Reconstruction and Development and Ukrainian banks in an effort to sustain critical infrastructure and essential services as the war persists. This positions blended finance both as a form of crisis financing, as well as a tool to effect operational and environmental sustainability for real economy companies.

“This current report looks at data from 2024 and does not yet reflect the full effects of the decline in official development assistance that we’ve seen in the last year or so,” says Joan Larrea, CEO at Convergence. “We can expect more big waves of change to come and we are going to need to be more efficient and ambitious with how concessional money is applied within blended finance transactions. This report captures some of the groundwork being laid for the next decade of blended finance. Whether the changes ahead produce more urgency around scale and speed-to-market or whether the field weakens under strain will depend on how well we apply the lessons we’ve learned from the last decade.”

Finally, this year’s report assesses the state of climate blended finance in light of the Fourth International Conference on Financing for Development held in Seville earlier this year, and sets out the key challenges and opportunities facing the market in the years ahead.

Analysis in the report draws from Convergence Market Data, the largest and most detailed database of historical blended finance transactions, currently comprising 1,478 blended finance transactions with a total investment of $260 billion.

Read the State of Climate Blended Finance 2025 [here](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view).

__About Convergence__ 
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.

__Media Contact__ 
Sijia Yi 
Head of Communications 
Convergence 
sijia.yi@convergence.finance

Convergence, the global network for blended finance,  has launched the State of Climate Blended Finance 2025.

New report finds climate blended finance market holds steady

New Convergence report finds climate blended finance market holds steady, while private investor momentum builds

Media Development Investment Fund (MDIF) is a mission-driven investment fund that provides debt and equity financing, alongside strategic business advice, to independent media and information ventures. For 30 years MDIF has invested in independent media around the world providing diverse news and facilitating the exchange of information and views needed to build free, thriving societies.

We spoke with Patrice Schneider, Chief Strategy Officer about how MDIF engages in blended finance, how they measure impact, gaps and opportunities in the blended finance market, and more.

__What does MDIF do and how does it engage in blended finance?__ 

In our blended finance approach, philanthropic capital plays a catalytic role. Grant funding, guarantees, and concessional capital allow us to crowd in private investors. Crucially, we use blended finance not just to manage risk, but to enable investments where market-rate returns are less feasible, but the societal value is high. We advocate for a third way of media financing that fills the space between grants and commercial capital and recognizes the public value of independent information often overlooked by the market.

As leading economists, including Nobel laureates Joseph Stiglitz and Daron Acemoğlu, have [written](https://informationdemocracy.org/wp-content/uploads/2025/09/The-Economic-Imperative-of-Investing-in-Public-Interest-Media.pdf): “Access to reliable information is the fundamental resource that fuels our 21st century economy (…), no less than previous eras relied on the power of steam or coal for industrial development.” However, despite its essential role, the independent media sector remains systemically overlooked in impact investing. While conventional media investment often prioritizes profit at the expense of public interest, eroding standards and weakening the sector’s mission, our work helps ensure this critical infrastructure receives the long-term investment it needs to serve the public good.

__MDIF is celebrating its 30th anniversary this year – and blended finance has been part of your strategy since the very beginning. What achievements are you proud of?__ 

With 30 years of experience, MDIF has been investing in independent media and information ventures long before terms like “impact investing” or “blended finance” entered the mainstream. From the outset, we’ve combined grants, concessional funding, and commercial capital to support public-interest media with financing aligned to their mission.

Our achievements are best reflected in the long-term impact of our clients. Since 1996, we’ve [invested](https://www.mdif.org/impact/track-record/) $270.9 million in debt and equity across 157 media and information companies in 50 countries. Many have grown from startups into trusted national institutions, withstanding political pressure, navigating economic shocks, and seizing opportunities to expand their reach and impact.

They inform millions, hold power to account, support democratic participation, and help drive progress in their communities. That enduring contribution to more informed, resilient societies is the legacy we are most proud of.

__Can you describe one or two blended finance transactions that MDIF has been involved in?__ 

One example is Plūrālis, a media investment vehicle that provides mission-driven, blended capital and strategic media growth expertise to independent media in Central and Eastern Europe to support media plurality. Managed and co-funded by MDIF, it brings together a coalition of prestigious European media companies, foundations, and impact investors. Its blended structure combines concessional and grant capital from philanthropy, industry expertise from leading media organizations, institutional capital interested in impact, and contributions from private wealth seeking both financial and societal returns. To expand access to capital, MDIF partnered with leading German ethical bank GLS to issue Europe’s first impact bond for media plurality.

Another example is MDIF Media Finance (MMF), a blended-value loan fund providing affordable loans to independent media in OECD-DAC countries, launched with the backing of Sida, the Swedish International Development Cooperation Agency. Through a 55% first-loss guarantee, Sida enabled MDIF to raise capital from private investors, reducing their risk exposure while allowing MDIF to expand financing for independent media in challenging environments.

These transactions illustrate how blended finance can align public and private capital behind a common goal: ensuring that independent media have the resources to serve the public interest, even when the market alone falls short.

__How do you measure the impact of your blended finance activities?__ 

Blended finance runs through MDIF as an organization, as well as specific funds, so the impact of MDIF as a whole is a reflection of the impact of our blended finance activities. Our investments strengthen builders of informed societies so that they can fulfil their vital role—sharing information that drives change, from new laws to better lives. [Research](https://www.mdif.org/wp-content/uploads/2023/07/MDIF-The-role-of-media-Driving-change-towards-the-SDGs.pdf) shows that free, viable, and diverse media are essential for democracy and human progress. Their work supports peace, justice, and strong institutions under Sustainable Development Goal (SDG) 16.10, while advancing progress across all SDGs.

We [track](https://www.mdif.org/impact/our-impact/) impact on two levels. First, we assess how our financing and strategic support help strengthen our clients—looking at metrics such as revenue growth, reach, or operational resilience. Second, we examine how our clients contribute to society—whether they are informing public debate, exposing corruption, enabling civic participation, or holding power to account. These findings are published [annually in our impact reports](https://www.mdif.org/impact/annual-reports/), combining data with case studies that show what independent media can achieve when they have the capital to support their mission.

__What gaps or opportunities do you see in the blended finance market?__ 

While there is growing recognition of blended finance, impact-first funding continues to fall short, especially for sectors like independent media that are essential to democratic resilience but difficult to serve through purely commercial models.

A key gap is the lack of flexible catalytic capital. Much of the current market is designed to reduce risk for private investors, rather than to enable impact-first investments. This limits the ability to reach sectors that deliver high public value but can’t promise market-rate returns. In MDIF’s case, blended finance is not simply about risk adjustment. It’s about making transactions possible where they otherwise would not be, due to structural market failure.

We believe what’s needed is not just more blended finance, but the growth of an *[ethical financial sector](https://medium.com/@patrice.schneider/funding-democracy-the-ethical-financial-sector-and-independent-media-06554c691910)*: a space for investors, donors, and financial institutions willing to prioritize public-interest outcomes over purely financial performance.

__How do you see MDIF’s blended finance activities evolving in the future?__ 

As information becomes increasingly central to how societies and economies function, the need for long-term, mission-aligned financing for independent media will only grow. Yet market failures persist. MDIF will continue to evolve our blended finance activities to meet this growing structural challenge.

We see a future where blended finance is not just a mechanism to de-risk investment, but a core strategy for enabling access to reliable information, especially in contexts where commercial capital alone cannot deliver. For MDIF, this means continuing to mobilize flexible, catalytic capital and structuring it in ways that reflect the unique realities of media businesses: long time horizons, non-linear growth, and a public service mission that often resists easy monetization. We will also continue to expand the role of the ethical financial sector, building partnerships with donors, development finance institutions, and values-driven investors who understand that supporting independent media is not just a democratic imperative, but an economic necessity.

Learn how Media Development Investment Fund engages in blended finance, how they measure impact, gaps and opportunities in the blended finance market, and more.

MDIF Member Spotlight with Patrice Schneider

Media Development Investment Fund Member Spotlight with Patrice Schneider

__Toronto, October 29, 2025__ – Today, the [Catalytic Climate Finance Facility (CC Facility)](https://www.ccfacility.org/) announced it has awarded USD 870,000 to its new cohort of grantees. The selected projects include the Southeast Asia Blue Innovation Facility (SEA-Fund), the Regenerative Capital Fund (ReCa), and the FTB Green Credit Facility.

The CC Facility, a partnership between [Climate Policy Initiative](https://www.climatepolicyinitiative.org/) and [Convergence](https://www.convergence.finance/), provides working capital grants of up to USD 500,000 to help scale early-stage financial solutions that mobilize private capital for climate action in developing economies.

The Facility and its team of experts also provide up to 18 months of tailored technical assistance to address barriers and maximize opportunities to increase the investment pipeline.

The three vehicles were selected following a rigorous review process from a pool of more than 500 submissions worldwide. Each vehicle addresses investment barriers in Southeast Asia and Sub-Saharan Africa, supporting projects in maritime decarbonization, climate-resilient agriculture, and the clean energy transition.

“These three vehicles stood out for their rigor, creativity, and strong potential to mobilize private capital for climate impact,” said __Joan Larrea, CEO at Convergence__. “In an era of diminishing foreign aid, blended finance initiatives like the CC Facility are proving indispensable, by fast-tracking climate solutions that not only deliver impact but also attract the capital needed to sustain it.”

With support from three anchor donors – [The Gates Foundation](https://www.gatesfoundation.org/), [Global Affairs Canada](https://international.canada.ca/en/global-affairs), and Australia's [Department of Foreign Affairs and Trade](https://www.dfat.gov.au/) – the CC Facility targets a main obstacle to scaling blended climate finance: the challenging acceleration stage, when promising financial vehicles try to attract investment across diverse markets.

__SELECTED VEHICLES:__ 
__The Southeast Asia Blue Innovation Facility (SEA-Fund)__ will be structured as a USD 450 million sustainability bond or asset-backed security to finance infrastructure projects with a focus on maritime decarbonization, alongside a USD 50 million venture capital fund dedicated to early-stage ocean and climate-tech startups.

__The Regenerative Capital Fund (ReCa)__ is a USD 400 million blended equity vehicle that mobilizes institutional investment to scale regenerative agriculture and nature-based solutions across Sub-Saharan Africa through long-term, climate-aligned, and inclusive agrifood investments.

__FTB Green Credit Facility__ is a USD 160 million program offering affordable, long-term loans and guarantees to help Cambodian banks and businesses invest in green projects.

__QUOTES__ 
“We applied to the CC Facility to accelerate the structuring and launch of the SEA Fund—a blended finance vehicle addressing the maritime decarbonization and climate adaptation gap in Southeast Asia—by leveraging the Facility’s catalytic capital and technical support. We aim to gain catalytic validation, structuring expertise to mobilize concessional and institutional investors, shorten time-to-market, and unlock the first wave of investable projects across the region,” said __Vicky Lay, Partner & Head of Impact of Artesian__.

“We applied to the CC Facility to strengthen the ReCa Fund’s impact frameworks, enhance our investor readiness, and build confidence in a scalable blended finance model for regenerative agriculture and climate adaptation across Africa. We hope to gain targeted technical assistance to refine our impact and gender KPIs, and catalytic grant support to accelerate due diligence, capital raising, and the successful launch of the ReCa Platform,” said __Duncan Vink, Joint Managing Director of Signature Agri Investments__.

“Our participation in the CC Facility marks a strategic commitment to pioneering the future of green finance in Cambodia. We are honored to collaborate in developing robust financial products and governance frameworks designed to mobilize private capital at scale. Through this Facility’s unique combination of grant funding, expert technical assistance, and a collaborative network, we will launch investable blended-finance models that directly address both climate mitigation and adaptation and improve critical services for Cambodia,” said __Dith Sochal, CEO of Foreign Trade Bank of Cambodia__.

__ABOUT THE CATALYTIC CLIMATE FINANCE FACILITY__ 
The Catalytic Climate Finance Facility (CC Facility) is a solution to scale climate finance by filling a market gap in mobilizing private capital. The CC Facility provides a range of services to market-ready blended finance vehicles in developing economies to help them expand their reach. Through grant funding, technical support, and a learning hub, the CC Facility accelerates the implementation of high-impact financial structures while providing resources to the broader ecosystem on how to best catalyze climate finance. The initiative is a partnership between Climate Policy Initiative (CPI) and Convergence.

__MEDIA CONTACTS__ 

__Sijia Yi__ 

Head of Communications 

Convergence Blended Finance 

sijia.yi@convergence.finance 

 

__Annie Woscoboinik__ 

Communications Associate 

Climate Policy Initiative 

annie.woscoboinik@cpiglobal.org

CC Facility awards nearly USD 1 million in grants for climate finance solutions in Asia and Africa

CC Facility new cohort announced

*Toronto, 27 October, 2025* — Today, Convergence Blended Finance and the Australian Department of Foreign Affairs and Trade (DFAT) launch the first call for proposals for the [Indo-Pacific NGO Blended Finance Accelerator](https://www.convergence.finance/accelerator/dfatngo). This five-year, AUD 10 million initiative will be managed by Convergence. The Accelerator will support non-governmental organizations (NGOs) to scope, develop, and implement high-impact blended finance solutions to advance climate action and gender equality in the Indo-Pacific region.

The Indo-Pacific region, while having experienced rapid economic growth, now faces mounting development challenges. It accounts for over half of global greenhouse gas emissions and includes six of the ten most climate-affected countries. Women and girls in the region are disproportionately impacted by poverty and climate change, underscoring the need for inclusive, gender-responsive solutions.

The role of NGOs in advancing climate and gender outcomes, especially in the context of blended finance, is becoming increasingly important. Convergence’s Market Data found that around 17% of all blended finance transactions have at least one NGO participating in developing and implementing the transaction. The social, environmental and impact expertise NGOs bring to the table is critical for the success of a blended finance transaction. With boots on the ground, NGOs have a realistic picture of what the target beneficiaries need. NGOs understand how to measure impact effectively, making their role vital from design through to implementation and evaluation of a blended transaction. 

We have seen a growing interest from NGOs to design and participate in blended finance solutions in the Indo-Pacific region. However, their participation remains limited due to lack of resources and support in designing and scaling blended finance transactions.

The Accelerator will help bridge that gap by equipping NGOs with the tools, knowledge, and partnerships they need to strengthen their role in designing, piloting, and scaling blended finance transactions as impact managers, technical assistance providers and, where suitable, fund managers. 

The Accelerator consists of two core components:
- __Catalytic Design Grants__: USD 200,000 to 550,000 to support NGOs from early-stage scoping and proof-of-concept through to the piloting and scale up of their blended finance solutions.
- __Acceleration Support__: NGOs supported by the initiative will also receive tailored capacity building, expert advisory services, peer learning opportunities, and facilitated access to funders and networks to bolster their potential for success in designing and scaling blended finance solutions.

 
The Accelerator will help NGOs use blended finance to overcome the structural barriers they face to expand their impact, especially in underserved markets like the Pacific Islands.

“In a time where many nations are increasingly looking inward, we are heartened that the Australian Government is undertaking this ambitious partnership with Convergence to support sustainable development in the Indo-Pacific region,” says Joan Larrea, CEO at Convergence. “This is an all hands-on deck moment and we need the sectoral and place-based knowledge of NGOs to create high-impact, solid investment opportunities.” 

“In the Indo-Pacific region, blended finance increasingly drives capital into business models scaling impact at the grassroots. NGOs are at the tip of the spear, working directly with local communities to address pressing challenges. By equipping NGOs to design and launch blended finance structures, we unlock financial innovations and private sector partnerships to accelerate sustainable development in the region,” Leah Pedersen, Senior Director, Blended Finance Accelerator at Convergence. 

Expressions of interest for the accelerator are now open. To apply, you can follow the instructions on the Indo-Pacific NGO Blended Finance Accelerator website and submit your applications by __November 18, 2025__.

*__Join Convergence and DFAT for an info session on the November 13, 2025, 2pm AEDT / 11am SGT. [Register now.](https://www.convergence.finance/calendar/4Td69Id1h1r31bRZsAFTuq/view)__*

__About Convergence__ 
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 DFAT Australia__ 
The Department of Foreign Affairs and Trade (DFAT) promotes and protects Australia’s international interests to support our security and prosperity.

Australia's [international development policy](https://www.dfat.gov.au/publications/development/australias-international-development-policy) sets the long-term direction for Australia's development program. It guides how Australia works with partners to advance a peaceful, stable, and prosperous future for our region – ensuring DFAT’s international development program is responsive to today's complex and interconnected challenges.

Convergence and the Australian Government Launch Call for Proposals for AUD 10 Million Accelerator to boost NGO participation in Blended Finance across the Indo-Pacific 

Indo-Pacific NGO Blended Finance Accelerator launch

Standard Chartered is a global bank connecting corporate, institutional, and affluent clients to a network that offers unique access to sustainable growth opportunities across Asia, Africa, and the Middle East.

According to Convergence Market Data, Standard Chartered is one of the most active private investors in blended finance, working with multilateral development banks (MDBs), development finance institutions (DFIs), governments, and philanthropy on tailor-made blended finance solutions.

We spoke to John Murton, Senior Sustainability Advisor at Standard Chartered about their Blended Finance Programmes Innovation Hub, gaps and opportunities they see in the field as a commercial investor, how they see their blended finance activities evolving in the future, and much more.

__How does Standard Chartered engage in blended finance?__

Historically we have approached blended finance on a project-by-project basis, which somewhat limits our opportunity to scale. This is why in 2024 we created the Blended Finance Programmes Team with the goal of establishing programmes that can strategically deploy blended finance solutions at both speed and scale.

This team sits within Standard Chartered’s Innovation Hub, which was launched in 2023 to focus on emerging sustainability themes that are nascent but ripe for growth. Today, we have five thematic areas of innovation: Programmatic Blended Finance, Carbon Market Development, Nature Finance, Circular Economy, and Adaptation and Resilience. The Hub is helping to test and scale solutions to help advance the ecosystem in these emerging thematic areas.

Our Blended Finance Programmes team within the Hub focuses on the delivery of both ‘Country Platforms’ and ‘sectoral partnerships’. On Country Platforms, Standard Chartered supports the Just Energy Transition Partnership processes across our markets, and we’re a signatory (as part of GFANZ) to the Indonesia and Vietnam JETP, pledging to at least match initial donor pledges sized at $10 billion and $7.75 billion respectively. In 2025 we [acted as lead arranger for the Saguling floating solar project in Indonesia](https://www.sc.com/en/press-release/press-release-2/); the first project to be financed under the JETP.

In addition to supporting these already established country platforms, we are working to support the creation and development of new country platforms that address the unique needs of our markets when it comes to financing the transition. We are the only private institution to sign up to the Bangladesh Climate and Development Platform focused on both mitigation and adaption. We are also mandated to advance Lesotho’s Just Energy Transition process – the first private-sector led country platform.

On partnerships, we are actively engaging with MDBs and DFIs with the aim of establishing strategic partnership frameworks that will catalyze capital and unlock financing for multiple projects. We expect to announce some exciting partnerships over the next year!

__Can you describe one or two blended finance transactions that Standard Chartered has been involved in? In what capacity did it participate?__

In September, colleagues in Standard Chartered’s Development and Agencies Finance team successfully structured [a first-of-a-kind EUR 433 million Sustainability-Linked Loan for the Ministry of Finance and Budget, Republic of Cote d’Ivoire](https://www.sc.com/uk/2025/09/02/standard-chartered-delivers-cote-divoires-first-sustainability-linked-loan-under-new-sustainability-linked-financing-framework/). The loan was supported by the World Bank Group, acting through the International Bank for Reconstruction and Development (IBRD) and the Multilateral Investment Guarantee Agency (MIGA). Standard Chartered acted as sole lender and mandated lead arranger.

This landmark facility was the first ever transaction to combine both first-loss and second loss guarantees from IBRD and MIGA, marking a significant milestone for the World Bank Group’s new Guarantee Platform. IBRD’s first loss policy-based guarantee and MIGA’s second-loss non-honouring of sovereign financial obligations were combined to achieve a total comprehensive World Bank cover level of 95%.

Arranged under Côte d’Ivoire’s Sustainability-Linked Financing Framework launched in June 2025, the sustainability-linked loan was structured to include a margin ratchet, linking financial conditions to clear sustainability performance targets in renewable energy (excluding hydropower), deforestation prevention, and reforestation. The framework will support efforts to meet the country’s goal to reduce carbon emissions by over 30% by 2030 and is expected to help boost resilience to climate impacts relating to agriculture. Furthermore, the incentive structure enabled the government to access long-term, competitive, and essential financing to advance their national climate resilience agenda. The transaction effectively showcases how collaborative innovation can help mobilize capital efficiently and support credible models for sovereign sustainable finance that can be replicated.

Looking to Asia, in 2024 Standard Chartered was the lead arranger in the refinancing of an IBRD loan to the State Bank of India (SBI) to support India’s national Grid-Connected Rooftop Solar (GPRV) programme. Originally launched in 2016, the programme, through SBI on-lending, funds photovoltaic installations to commercial and industrial consumers, that provide clean energy and reduce greenhouse gas emissions by displacing more expensive and carbon-intensive thermal generation.

The refinancing transaction included a 95% comprehensive guarantee from MIGA to protect against the risk of non-honouring of financial obligations by a state-owned enterprise for up to 10 years. By guaranteeing the refinancing, this project showcases an ‘originate to refinance’ model, an approach recommended by the Private Sector Investment Lab, launched by the World Bank Group in June 2023 to identify barriers and find potential solutions to unlock private investment in developing countries. Furthermore, by transferring portfolio risk from the World Bank balance sheet, following the initial de-risking of a nascent sector, to commercial lenders it frees up World Bank capacity to lend into new sectors and projects. The [financing](https://www.miga.org/press-release/miga-supports-innovative-solar-rooftop-systems-india) successfully helped SBI to reduce its borrowing costs and diversify its sources of borrowing.

__How do you measure the impact of your blended finance activities? What does that impact look like?__

We’ve been publishing our [Sustainable Finance Impact Report](https://www.sc.com/en/uploads/sites/66/content/docs/sustainable-finance-impact-report.pdf) since 2020 to highlight the tangible impact of this work, and key outcomes across our markets. This report quantifies the environmental and social outcomes of our sustainable finance activities, ranging from renewable energy capacity installed to social infrastructure supported.  Importantly, the report is subject to external assurance and aligned to ICMA’s Harmonised Framework for Impact Reporting.  In 2024 we were proud to report a Sustainable Finance asset portfolio of $23.3 billion across 439 projects in 51 markets. This was a 32% year-on-year increase from $17.6 billion in 2023.

Blended finance transactions are currently not covered in our sustainable finance impact report in their own right. Such transactions are inherently complex - and often bespoke - structuring solutions that can be difficult to capture systematically. However, there is significant overlap between our sustainable finance work and our blended finance work across the bank as both aim to advance high-impact projects that deliver meaningful sustainable development outcomes.  In many cases, projects supported through blended finance solutions will already be reflected within our sustainable finance impact reporting, including key metrics such as jobs created, emissions avoided, renewable energy capacity etc.

Looking ahead, our intention is to evolve our approach by potentially consolidating impact measurement for transactions across our innovation hub, featuring our blended finance programmes, debt-for-nature swaps, and outcome-based bonds for example. This would enable the Hub to set targets that can be more clearly measured, tracked, and reported. For the Blended Finance Programmes team this may include, in addition to those metrics above, the blended finance effectiveness of the transaction, such as dollars of private sector money mobilized per concessional dollar. We would expect to apply the same principles we use today: portfolio-level reporting and project-level reporting, attribution of impacts based on our financing share, and a commitment to transparency and credibility. That means being clear about whether impacts are realized or estimated, avoiding double-counting, and disclosing the methodologies used where estimates are applied.

__As a commercial investor in the blended finance space, what gaps/opportunities do you see in the blended finance market? What unique challenges do you face while engaging with public and/or philanthropic investors?__

We still see instances where private sector lending is being crowded out, and not efficiently mobilized, even in sectors and regions which are commercially viable. Blended finance must evolve so that each dollar of concessional funding mobilizes more private sector capital. The IIF’s ‘Lifting Prudential Barriers to Mobilizing Private Capital for Development Finance’ Policy Paper highlighted that every dollar every dollar committed by MDBs has only mobilized 50 cents of private capital in recent years. This must grow very significantly.  To achieve this, we need to make better use of effective de-risking tools such as first loss guarantees and price support mechanisms.  And we need to structure de-risking mechanisms so that lenders become comfortable with certain risks and concessional funding over time becomes less necessary.

At the same time, we are currently seeing an increase of blended finance solutions and models that have worked. Reports such as the Sustainable Markets Initiative and Investor Leadership Network’s ‘Blended Finance Best Practice’ and Convergence’s [Scale Private Investment Mobilization Project](https://www.convergence.finance/standardization) have been standout example of collating such efforts. There is a real opportunity to now take such solutions and replicate and scale into new themes and markets.

To maximize these efforts, we must engage new types of investors such as philanthropies, sovereign wealth funds and local capital markets, that can play critical roles across the life cycle of blended finance solutions. For example, philanthropies are able to contribute in the short term with much needed grants and technical assistance to get projects off the ground and create a viable and investable model. Sovereign wealth funds can invest in projects with long-term patient capital which provides stability and security for investors. Local Capital Markets can then offer exit strategies and help projects to refinance at better rates, freeing up capital to be recycled into new projects. The size of these untapped pools of capital is staggering and will be key to ensuring the future resilience of blended finance solutions in light of recent geo-political shifts and to widening the pools of supply.  According to Africa Finance Corporation’s recent ‘State of Africa’s Infrastructure Report 2025’ there are over $4 trillion in domestic resources on the African continent which are not currently being leveraged.

__How do you see Standard Chartered blended finance activities evolving in the future?__

Standard Chartered is committed to effectively deploying blended finance solutions to themes and geographies where it is most needed to help make projects bankable and crowd in private sector investment. We want to continue to be at or near the top of Convergence’s league tables, evidencing efforts to use blended finance to support our sustainable finance goals, and long-term value creation for our markets. As our CEO has said, *sustainable finance isn’t just business that’s good, it’s good business*.

One opportunity we are currently very excited about is our mandate with ‘His Majesty King Letsie III Just Energy Transition Limited’ an SPV looking to form a first-of-a-kind private sector led country platform in Lesotho. The initiative, endorsed by His Majesty and the government, is designed to mobilize different pools of capital to finance a portfolio of both generation and transmission projects to support the delivery of Lesotho’s NDC and Mission300 Compact. The opportunity represents a unique case study for a land-locked least developed country to leapfrog from an energy importer to an exporter of clean power, supporting domestic and regional energy stability and security.

Similarly, we see great potential for the Innovation hub to continue to incubate new and exciting blended finance solutions to support emerging themes within the sustainability ecosystem such as adaptation financing and [circular economy](https://www.sc.com/en/press-release/standard-chartered-appoints-andrew-morlet-as-senior-advisor-circular-economy/) projects. Watch this space!

Learn about Standard Chartered's Blended Finance Programmes Innovation Hub, gaps and opportunities they see in the field as a commercial investor, how they see their blended finance activities evolving in the future, and much more.

Standard Chartered Member Spotlight with John Murton

*This op-ed was originally published on [ImpactAlpha](https://impactalpha.com/impact-investing-needs-to-rediscover-its-catalytic-edge/).*

In the early years of impact investing, trailblazers demonstrated pathways to invest while embracing risk and financing markets ignored by traditional capital. Yet, fifteen years after the field’s founding, most impact investors are not deploying the amounts of catalytic capital required to move the needle on financing for sustainable development.

J.P. Morgan and the Rockefeller Foundation launched impact investing 15 years ago as a new “asset class” designed to generate positive social and environmental impact while taking financial risks and making returns. Impact investors offered agile structuring, patient capital and flexible terms to secure impact-aligned deal pipelines. 

The impact investing field played a catalytic role by absorbing risks and remaining open to accepting lower returns in exchange for achieving impact outcomes and building markets for mainstream investors. With the rise of blended finance five years later, impact investors were viewed as a key catalytic capital source in blended structures to balance risk-adjusted returns. 

Since the field’s founding, it has grown to include more investors seeking double bottom-line returns, proving the case that impact and returns are not mutually exclusive. However, in our current climate of diminished foreign aid and increased opportunity to direct private investment to developing markets, there’s no greater time for impact investors to embrace taking risks.

Instead, it seems most shy away from investing in ways that intentionally mobilize the larger commercial capital required to increase investment flows and rapidly scale up impact outcomes. 

__The state of play__ 
According to GIIN’s latest annual impact investor survey, more than three-quarters of respondents targeted risk-adjusted, market-rate returns. The remaining investors strategically allocated to concessional flexible returns across the market-rate to capital preservation spectrum. This trend has remained consistent even though demand for catalytic investing with flexible terms continues to rise, especially with the global decline in Official Development Aid. 

In the GIIN’s [2024](https://thegiin.org/publication/research/state-of-the-market-2024-trends-performance-and-allocations/) survey, nearly 70% of respondents agreed that blended finance plays a role in de-risking transactions for impact investors. Yet less than half of respondents had participated in a blended finance deal. Among those who did, the most common strategy was through market-rate investments – allocating 39% of blended finance capital in safer investment tranches and only 13% in subordinated debt and 5% in first-loss capital.

In my work leading Convergence’s [Blended Finance Accelerator](https://www.convergence.finance/accelerator), I have observed these trends firsthand. Our 2025 [State of Blended Finance report](https://www.convergence.finance/resource/state-of-blended-finance-2025/view) found that 65% of all concessional capital ($5.1 billion) was supplied by mainly public sources, including development finance institutions and government agencies. Conversely, impact investors’ annual investments in blended structures over the past three years accounted for just 6% of capital commitments to blended structures (approximately $400 million) and primarily took the form of senior equity and debt positions. More than 80% of these investments were made on commercial terms with minimal participation in concessional roles such as first-loss or subordinated capital.

In short, impact investing in 2025 has largely come to resemble traditional commercial investing in seeking top-quartile returns. More than [half](https://thegiin.org/publication/research/state-of-the-market-2024-trends-performance-and-allocations/) of emerging market-focused investors reported challenges balancing financial risk/return expectations alongside impact expectations. They have begun to lean on development finance institutions and multilateral development banks to invest risk capital and take more junior positions, making it safer for impact investors to participate commercially instead of catalytically.

__What leadership looks like: Truly catalytic impact investing__ 
Despite the field’s overall reluctance to take catalytic positions, there are bright spots. Known for prioritizing flexible risk and return parameters as well as historically taking catalytic first-loss debt positions, [Ceniarth](https://ceniarthllc.com/) tops the list by number of investments, having participated in 10 blended finance deals (totaling $16.7 million) over the past three years. 

In terms of capital deployed, [BlueOrchard](https://www.blueorchard.com/) leads with $46 million invested in blended transactions during the same period, partially allocated in riskier positions such as junior equity and unsecured debt. 

Meanwhile, [Calvert Impact Capital](https://calvertimpact.org/) is recognized for its catalytic structuring and anchor risk-sharing roles. The organization regularly takes subordinated positions to absorb first losses — a move critical for attracting development finance institutions and institutional investors to blended transactions. Its investment in the [Off-Grid Energy Access Fund](https://calvertimpact.org/investing/partner/fei-ogef), which mobilizes capital for distributed solar solutions across Sub-Saharan Africa, exemplifies this approach. These actors demonstrate what catalytic impact investing can look like in practice to make blended transactions scalable. More impact investors should embrace this risk-tolerant role.

To reclaim their leadership role, impact investors could offer more out-of-the-box thinking. For example, they could take pooled *pari-passu* positions with development finance institutions and multilateral development banks, enabling large, risk-intolerant investors like pension funds to invest more in emerging and developing markets. Impact investors could also capture stronger data on additionality, such as their contribution to mobilization plus achieving impact-aligned returns, establishing crucial benchmarks and widening the field’s definition of impact potential. 

The field’s pursuit of mainly market-rate returns and increasing stability may be crowding out the commercial capital impact investors need to attract — a critical halo effect not to be underestimated.

Looking toward the next 15 years, impact investors should carve out more space for intentional risk-taking and increase portfolio allocations to highly catalytic positions in blended transactions to rapidly accelerate the original mission and vision of the field.

In the early years of impact investing, trailblazers demonstrated pathways to invest while embracing risk and financing markets ignored by traditional capital. Yet, 15 years later most impact investors are not deploying the catalytic capital required.

Impact investing needs to rediscover its catalytic edge

In an era of constrained official development assistance (ODA), increasing the representation and activity of developing country governments, regional development banks, and private actors in the blended finance market is more critical than ever. [How Sub-Saharan African Public Institutions Blend](https://www.convergence.finance/resource/how-sub-saharan-african-public-institutions-blend/view) (paywall), a new Convergence Enhanced Data Brief, explores how Sub-Saharan African (SSA) public institutions have sought to build and develop their blended finance programs to date, examining the challenges they have faced and identifying opportunities for the future.

__The case for local leadership amid constrained aid flows__

Blended finance’s future amidst unprecedented aid cuts in the Global North [remains](https://www.convergence.finance/resource/state-of-blended-finance-2025/view) uncertain. With baseline ODA levels significantly diminishing, the shifting dynamics of global aid present a pivotal opportunity for developing country governments, regional development banks, and private actors to emerge as leaders in the blended finance market. By advancing their ambitions and shaping global agendas around their priorities, developing country actors can influence how capital is structured and deployed, thereby helping to guide blended finance toward more inclusive and sustainable outcomes.

Historically, cross-border foreign investment in blended finance was [prioritized](https://www.convergence.finance/resource/state-of-blended-finance-2025/view) in the “billions to trillions” agenda, such that mobilizing a fraction of the $460 trillion in global financial assets based largely in developed economies became the focus for addressing the Sustainable Development Goals (SDG) financing gap. There is increased [recognition](https://www.africafc.org/our-impact/our-publications/state-of-africa-infrastructure-report-2025) however, that external financing is most catalytic when it complements rather than substitutes domestic resource mobilization. Recent [studies](https://www.africafc.org/our-impact/our-publications/state-of-africa-infrastructure-report-2025) have estimated that Africa holds at least $4 trillion in domestic capital, including $1.1 trillion in institutional capital, $2.5 trillion in commercial banking assets, and more than $470 billion in external reserves.

Much of Africa’s domestic capital remains invested in low-risk, short-term instruments and has not been tapped to help address the region’s SDG financing gap. Maximizing the activity of local funders investing in local currency is even more critical at a moment when overseas aid flows are at risk. They are key to the mantra of blended finance being able to do more with less in an environment of constrained ODA.

__Persistent challenges: policy, capacity, and project preparation__

The [brief](https://www.convergence.finance/resource/how-sub-saharan-african-public-institutions-blend/view) finds that SSA governments have faced three central challenges in structuring their blended finance programs.

__First__, policy frameworks for private sector-led development are underdeveloped in SSA, with stretched fiscal resources rarely being allocated toward mobilizing the private sector for development. Effectively aligning different public stakeholders in accordance with a national blended finance strategy remains a challenge across the region.

__Second__, SSA institutions often lack the technical capacity to develop blended finance programs that utilize limited fiscal resources to mobilize private capital efficiently. Sourcing necessary skillsets has proven challenging for nascent blended finance programs, with internal capacities for deal structuring, risk allocation, and financial modelling having to be built over time, often with outside technical support. This need has been particularly acute for organizations historically more involved in deploying grants at smaller ticket sizes, where financial skillsets have been scarcer.

__Third__, a lack of well-structured projects ready for private sector investment is pervasive across SSA. Due to gaps in their preparation, few projects in the region reach financial close. Dedicated project preparation facilities are needed to help conduct feasibility studies and provide technical preparation support, thereby enabling private financing at a later stage across project lifecycles.

__Opportunities: coordination, partnerships, and advisory support__

Public institutions in SSA can capitalize on several opportunities to boost the effectiveness of their blended finance programs in catalyzing both overseas capital and domestic institutional capital into local development projects.

SSA governments should __establish coherent policy frameworks and country platforms for blended finance__ to improve coordination and signal local commitment to overseas investors and domestic institutional investors. Such frameworks should explicitly define how blended finance can be deployed to mobilize investment, while noting how domestic fiscal resources will be used to de-risk projects and catalyze private participation.

They should also __foster partnerships with local, regional, and international actors__ to share knowledge and develop transaction structures that can attract sustainable private inflows into development sectors. Partnering with other actors in the ecosystem such as foundations, impact investors, and development finance institutions can help build operational capacity, share risk, and ultimately develop innovative structures investable by institutional investors.

Finally, governments should __seek advisory support to boost their understanding of blended finance__ and improve project structuring and impact monitoring. Regional development banks and other actors can strengthen their advisory roles, helping financial institutions and governments incorporate blended finance tools to catalyze private funding for development objectives.

__Key data findings__

Convergence Market Data has recorded __96 concessional commitments from investors domiciled in SSA across 87 SSA transactions__, representing __$1.38 billion in investment volume__. Sixty-six of these commitments occurred in the last 10 years across 59 SSA transactions.

The __median deal size__ of SSA transactions funded concessionally by SSA-domiciled actors ($32 million) tends to be slightly smaller than that of the overall SSA blended market ($36 million) and the entire blended finance market ($50 million). The most targeted __vehicles__ by SSA-domiciled concessional funders are companies (25% of commitments) and projects (24%), followed by funds (21%).

The leading __sub-instruments__ deployed by SSA-domiciled concessional funders are investment-stage grants (31% of commitments), technical assistance grants (15%), and design-stage grants (14%). The __top sectors__ targeted are energy (43% of commitments) and financial services (22%). Most SSA-domiciled concessional funders come from the __public sector__, accounting for 54% of concessional commitments. The most active concessional investors are Financial Sector Deepening Africa (FSD Africa) with 14 commitments and InfraCredit Nigeria with 10.

![fig1-2 africadatabrief](//images.ctfassets.net/4cgqlwde6qy0/12G5CDFeehFtej3zDDkPG2/b355437b7d2a6933ade4496203acc2a3/fig1-2_africadatabrief.png)

__Toward African-driven blended finance__
For SSA governments facing elevated debt burdens that reduce fiscal flexibility and limit sustainable borrowing, the incentives for de-risking and catalyzing private capital through blended finance are clear. Strengthening coordination, building technical capacity, and expanding project preparation will be essential to mobilize greater levels of private investment for domestic development priorities.

In an era of constrained overseas aid flows, boosting the capacity of SSA governments to independently structure their own blended finance programs is more critical than ever.

__Read the full Enhanced Data Brief:__ [How Sub-Saharan African Public Institutions Blend](https://www.convergence.finance/resource/how-sub-saharan-african-public-institutions-blend/view) (paywall)
*Published October 2025*

Learn how Sub-Saharan Africa's public institutions are building their blended finance capacity

How are Sub-Saharan Africa's public institutions blending?

How are Sub-Saharan Africa's public institutions building their blended finance capacity?

This year [Climate Week New York](https://www.climateweeknyc.org/) will take place from September 21-28. Convergence will be an active participant, attending and contributing to several events related to blended finance and mobilizing capital for climate action. 

We'll be hosting a [Member Breakfast & Networking](https://www.convergence.finance/calendar/1Bc4uMZzuGPojfZyCFIVHs/view) event on Monday, __September 22, 2025 at 8:30AM - 10:00AM ET__. Read on to learn which events we’ll be part of throughout the week.

Be sure to follow us on [LinkedIn](https://www.linkedin.com/company/convergenceblendedfinance/) to stay up to date with our activities at Climate Week.

__Convergence Delegation:__

[Joan Larrea](https://www.convergence.finance/about/team/GFACYZSAIE8qmmCKA8ywc), CEO

[Leah Pedersen](https://www.convergence.finance/about/team/1kS1ajAc1LUMVV4hriluTk), Senior Director, Blended Finance Accelerator 

[Alicia Maitland](https://www.convergence.finance/about/team/4TQPoEtQnLMswMe9T7NKUr), Manager, Training and Engagement

[Ilsa Weinstein-Wright](https://www.convergence.finance/about/team/Q0FlfBuBbkgIr6A7T9w8N), Senior Associate, Market Insights

[Ishwari Sawant](https://www.convergence.finance/about/team/3LHmLgMqLiAsTp5dMTnaaD), Senior Associate, Market Insights

__Events__

| Date & time (ET)      | Event title   | Organizer     |
| ----------  | ---------- | ---------- |
| Sep 21, 11AM-1PM | Asia at the Crossroads: Aligning Global Signals with Regional Action     | Rockefeller Foundation  |
| Sep 22, 8:30AM-10AM | [Convergence Member Breakfast & Networking](https://www.convergence.finance/calendar/1Bc4uMZzuGPojfZyCFIVHs/view) | Convergence    |
| Sep 22, 11:30AM-1PM | Scaling Mechanisms to make Climate Projects Bankable  | Transition Finance & Investment Working Group of Sustainable Business COP (SB COP) and the Glasgow Financial Alliance for Net Zero (GFANZ)    |
| Sep 22, 9AM-5PM | Partnerships for the Future Summit  | Ministry of Foreign Affairs of Denmark, Danish Industry, and the Danish Chamber of Commerce       |
| Sep 22, 3PM-6PM | Road to COP30: Gender-Responsive Climate Finance  | 2X Global       |
| Sep 22, 6PM-9PM | Partnerships for the Future Summit Reception     | Ministry of Foreign Affairs of Denmark, the three Danish pension funds PFA, PKA, and PensionDanmark, and State of Green    |
| Sep 22, 12PM-6PM | The Adaptation Forum   | The Resiliency Company, Tailwind Futures, Resilience Investments, Probable Futures, Virta Ventures       |
| Sep 22, 4PM-5:30PM | Navigating Growth at Risk – From Insight to Action  | MSCI and BCG    |
| Sep 23, 8AM-11AM | Haqdarshak's Building Resilience with Sustainable Livelihoods: A Systems Approach    | Haqdarshak    |
| Sep 23, 10AM-12PM | Climate Resilience Without Borders: Technology Transfer for Global Adaptation  | GARI|
| Sep 23, 9AM-11AM | The Road to Belem: Scaling Climate Solutions from Emerging Markets| Climate Champions Team, under the Regional Platforms for Climate Projects (RPCP) initiative  |
| Sep 23, 12:30PM-3PM | Reinvest+: Unlocking Institutional Capital at scale for Climate and Nature| Inter-American Development Bank (IDB) and Sustainable Business COP|
| Sep 23, 1PM-3PM | Regroup for BCG/RF Bellagio Group | BCG / Allied Capital Partners |
| Sep 23, 4PM-6PM | Global Capacity Building Coalition Showcase | Global Capacity Building Coalition |
| Sep 23, 9AM-2PM | Latin American Impact Morning | LatImpacto |
| Sep 23, 5PM-8PM | Blended Finance Solutions for a Just Transition |  BCG |
| Sep 23, 5:30PM-8PM | 2X Global Investor Meet-Up |  2X Global |
| Sep 24, 8:30AM-10AM & 12PM-1:45PM | Clinton Global Initiative Annual Meeting |  Clinton Global Initiative |
| Sep 24, 8:30AM-10:30AM | Ending Period Poverty | CouldYou? |
| Sep 24, 12PM-12:45PM | SDG Development Forum |  CFO Coalition for the SDGs, UN Global Compact |
| Sep 24, 8AM-1PM | Leveraging Global Dialogues to Enable Cross-Border Green Investments with focus on Maharashtra, India | cKinetics |
| Sep 24 | 2nd  Blended Finance Conference| Sustainable Investing Research Initiative - Columbia University  |
| Sep 24, 1:30PM-6:30PM | GIIN Inaugural Climate Solutions Investing Roundtable| GIIN |
| Sep 24, 2PM-6PM | Mobilizing Capital for Climate Solutions in Emerging Markets| CPI and Deutsche Bank |
| Sep 24, 5PM-7PM | The Gender Dividend: Investing in Women for Climate Impact| WOCAN |
| Sep 25, 10AM-12PM | Mobilizing Finance for Sustainable and Resilient Agriculture Supply Chains| Morgan Stanley and Clarmondial |
| Sep 25, 8AM | Catalyzing Finance for Agrifood Systems in Africa| BCG |
| Sep 26, 9AM-10:30AM | Peace-Positive Finance: Building the Ecosystem for Sustainable Impact Roundtable| UNCDF |

Find out which events Convergence will be attending at Climate Week New York 2025

Convergence at Climate Week New York 2025

Over the past decade, the G7 has emerged as a platform for advancing blended finance. It has evolved from simply supporting the concept of private capital mobilization for emerging markets and developing economies (EMDEs) to actively engaging frameworks that measure the catalytic potential of donor capital.

The outcome of the most recent G7 summit, this past summer, continued this trend reinforcing the need to strategically channel concessional commitments, cultivate investor-ready blended finance pipelines, and promote more market-driven risk-sharing mechanisms - all critical to mobilizing more private capital into high-potential but underinvested sectors across EMDEs.

## Unpacking G7 Commitment to Scale-Up EMDE Private Financing 
In 2015, following the Third International Conference on Financing for Development held in Addis Ababa, G7 countries began referencing the role of private capital in global economic development. It then became a core pillar of G7 strategy starting in 2018 when the Canadian G7 Presidency marked a turning point with the launch of a dedicated development finance institution (FinDev Canada). Subsequent G7 convenings explicitly endorsed blended finance as a tool to catalyze private capital for sustainable development and applied the OECD Development Assistance Committee (DAC) [Blended Finance Principles](https://www.oecd.org/en/publications/oecd-dac-blended-finance-principles_dc66bd9c-en.html) as a guiding framework.

Recent summits have seen G7 leaders launch initiatives that continue to emphasize blended finance to mobilize capital for critical areas like infrastructure, clean energy, and climate resiliency. Further, regional progress was made under the 2024 Italian presidency when the G7 focused on Africa’s long-term sustainable investment needs. These past efforts helped to lay a policy and operational foundation to strategically allocate concessional resources and risk mitigation mechanisms to increase capital flows critical for future economic stability.

## Progress Made at the 2025 G7 Summit 
The 2025 Leaders’ Summit, per the [G7 Chair’s Summary](https://g7.canada.ca/en/news-and-media/news/chairs-summary/), focused on the importance of building productive coalitions among the private sector, development finance institutions, and multilateral development banks to facilitate more commercial investment, drive inclusive economic growth, and advance sustainable development especially during impending market volatility and potential resulting global shocks.

As illustrated in the [G7 backgrounder](https://g7.canada.ca/en/news-and-media/news/chairs-summary/), “Prime Minister Carney Concludes 2025 G7 Leaders’ Summit”, the take-aways of the 2025 G7 Leaders’ Summit in Kananaskis reaffirmed the commitment to blended finance as a catalytic instrument addressing the widening development finance investment gap. The presidency emphasized scaling proven solutions by doubling-down on initiatives initially launched under Canada’s 2018 G7 presidency. Prime Minister Mark Carney announced a financing package building on Canada’s efforts including continuation of the [International Assistance Innovation Program (IAIP)](https://www.international.gc.ca/world-monde/funding-financement/iaip-piai.aspx?lang=eng) with CAD 290 million over five years to mobilize private capital supporting the Sustainable Development Goals (SDGs). Furthermore, Canada committed CAD 101.3 million to overcome persistent barriers (such as political and credit risks) to private investment in infrastructure in EMDEs including project preparation support and risk-sharing mechanisms.

The recent launch of the [Accelerator for Fund Managers](https://www.convergence.finance/accelerator/a4fm) (A4FM), by Convergence and the Canadian Government, marks a promising step in this same direction. The initiative reflects Canada’s continued leadership in blended finance and advancing of G7 priorities on private capital mobilization in EMDEs. By offering catalytic funding to the design and launch of blended solutions, A4FM directly engages investment managers to address the chronic shortage of scalable, investor-ready blended vehicles sponsored by institutional investors. It also reinforces an opportunity to strategically channel concessional capital in the blended finance field to overcome real-world structuring challenges and go-to-market barriers faced by commercial financing institutions.

Finally, the 2025 G7 summit offered a moment to take stock. The recent summit’s measures represent continued progress from high-level aspirations to actionable blended finance programs for capital providers. In particular, Canada’s leadership continues to translate policy into practice, reinforcing the importance of market-led models, strategic use of concessional funds, and risk-sharing mechanisms to widen the investing aperture of EMDE capital deployment to address sustainable impact-aligned outcomes.

G7’s Evolving Role in the Blended Finance Ecosystem

*This article is authored by [Regina (Rossmann) Vasarais](https://www.linkedin.com/in/regina-rossmann-vasarais-32a66b105/), Manager, Training and Engagement at Convergence.*

Many U.S. and Europe-based pension funds, insurance companies, and other institutional investors are still reluctant to invest in emerging markets. Often, the perceived risk of investing in these markets is higher than the actual risk. Credit rating agencies play an important role in this, because institutional investors rely on them to assess credit risk. Earlier this year, [Allianz GI](https://www.environmental-finance.com/content/analysis/credit-rating-agencies-key-to-unlocking-blended-finance-says-allianz-gi.html) cited a lack of investment-grade ratings as one reason blended finance has not scaled as quickly as many had hoped.

Here, we take a closer look at the role credit ratings can play for blended funds, and the reasons why assessing blended finance structures is difficult for rating agencies.

In general, fund managers have several options to obtain a credit rating for private credit strategies. First, they can obtain an external credit rating for the whole (blended) fund. Secondly, they can rate each individual project before capital deployment individually, using a methodology aligned with that of an established credit rating agency. And third, they can obtain a credit rating only for the senior tranche of the fund – the tranche that is aiming to attract institutional capital. Some examples below: 

__1.	Obtaining a credit rating for the entire blended fund__ 
The Emerging Africa and Asia Infrastructure Fund (EAAIF) is one of the blended funds that has obtained an investment grade credit rating. Managed by NinetyOne, EAAIF is a part of the Private Infrastructure Development Group (PIDG), and one of the first blended finance debt funds for African infrastructure (vintage 2002, see Convergence [case study](https://www.convergence.finance/resource/emerging-africa-infrastructure-fund-case-study/view)).

In 2022, Moody’s, one of the top tier rating agencies, assigned it a foreign currency long-term issuer rating of A2 with a [stable outlook](https://www.eaif.com/eaif-secures-a2-credit-rating-from-moodys/). According to Moody’s, the main factors for this rating were:
1. A strong capital position that reflects moderate but rising leverage, and a diversified lending portfolio notwithstanding weak asset credit quality;
2. A robust base of liquid assets stemming from highly-rated development finance institutions and commercial lenders;
3. A high level of member support from a base of highly-rated shareholders of PIDG, reflecting the fund’s strategic position in PIDG.

 In 2024, Moody’s [affirmed](https://www.eaif.com/moodys-affirms-emerging-africa-and-asia-infrastructure-funds-a2-credit-rating/) the fund’s A2 credit rating.

__2. Internally rate each individual project before capital deployment__ 
ImpactA Global ("ImpactA"), a women-led investment company based in London, chose an internal rating approach for their strategy. ImpactA set out to launch a fund, the ImpactA Global Fund, that provides debt financing for sustainable infrastructure projects (renewable energy, clean mobility, health, water and sanitation) in emerging markets. In 2023, ImpactA [entered](https://group.legalandgeneral.com/en/newsroom/press-releases/legal-general-commits-up-to-100-million-to-impacta-global-to-address-critical-sustainable-infrastructure-deficit-in-emerging-markets) into a partnership with Legal & General’s (L&G) alternative assets platform.

Having a robust credit rating methodology was important for L&G in considering ImpactA’s strategy. L&G supported ImpactA in the analysis of various rating agency approaches and, after careful consideration, ImpactA decided that each individual transaction would be rated under a framework closely aligned to Moody’s methodology. L&G’s Head of Infrastructure Credit Rating worked with management in the design of a set of policies and procedures to govern the ratings process and ImpactA has subsequently hired an experienced credit rating analyst who now leads the rating process reporting to the Chief Revenue Officer. The credit rating analysis provides a rigorous and transparent process that forms a key part of the broader investment decision.

In March 2025, ImpactA [announced](https://impact-investor.com/impacta-global-raises-200m-for-emerging-market-financing/) it had gathered more than $200 million in commitments toward its Fund. In addition to the initial support from L&G, the Fund gained backing from the UK Government via its MOBILIST programme, from IDB Invest, and several private institutions.

The strategy of rating individual projects is a viable approach for ImpactA given the nature of the underlying investments in infrastructure project finance. However, this approach might pose challenges to funds that, for example, aim to lend to SMEs with limited credit history in potentially volatile markets.

__3.	Obtain a rating for the senior tranche only__ 
Other fund managers choose to obtain a credit rating for only the senior debt portion of a blended fund. Yet, this is not an easy undertaking.

One case in point is Lendable, a debt finance provider to fintech companies across frontier and emerging markets. For Lendable’s MSME Fintech Credit Fund II, Lendable obtained an investment grade rating for the senior debt portion of the fund’s capital. Lendable’s more than eight-year track record in lending to similar fintech companies with very low historical loss rates, along with its existing portfolio, were key factors supporting the rating, as the new fund’s strategy closely mirrors the current portfolio. The rating agency also highlighted the 60% subordination provided by the fund’s junior tranches—comprising equity and catalytic debt—which would absorb potential losses first, ensuring additional protection for senior debt holders. Issued by an ESMA-accredited agency, the rating met institutional investors' requirements and enabled the company to attract fully commercial investors. Going forward, Lendable aims to explore how its investees, fintech market leaders, can work with local and global rating agencies to attract top tier institutional investors alongside Lendable.

Similar to Lendable, Mirova, part of Natixis IM, also sought to obtain a credit rating for only the most senior tranche of one of its blended funds.

The Mirova Gigaton Fund is a $332 million blended finance debt fund composed of three tranches that aims to accelerate the clean energy transition. The fund provides loans in the renewable energy sub-sectors such as solar home systems, agri-solar, commercial & industrial, telco ESCO, mini-grids sectors in Africa, Asia, and Latin America. 

To increase the attractiveness of the super senior tranche to private investors, Mirova had multiple conversations with several top tier rating agencies to explore whether a credit rating for the super senior tranche could accurately reflect the de-risking mechanisms used in the fund structure.

In 2021, Mirova obtained a grant under the Gender Responsive Climate Finance Window, funded by Global Affairs Canada and managed by Convergence. Part of this grant supported the efforts to obtain a credit rating.

Mirova also selected a third-party company specialized in solvency credit rating calculation. This was necessary given the lack of track record and data on renewable energy funds in emerging markets. The lack of data also meant that rating agencies had to adapt their methodology, and involve several internal teams to evaluate this unusual structure.

Obtaining a credit rating for the super senior tranche that factors in that level of protection proved difficult. The acceleration clauses required by some Development Finance Institutions (DFIs) for their participation in the mezzanine tranche of the fund were one of the barriers identified. The rating agency’s analysis found that in the case of liquidation after the acceleration by an investor (i.e. DFI), the waterfall structure may not remain intact, since in some scenarios the DFI mezzanine notes could be treated pari passu with the super senior private investor notes, instead of providing protection. As rating agencies integrate the most conservative scenario, the mezzanine DFI tranches will not be integrated in the rating scoring and cannot be considered adequate protection. 

Through several discussions with various rating agencies, Mirova concluded that only in specific cases can rating agencies consider subordinated debt as protection for senior debt.

That said, there was good news, too. The $50 million portfolio guarantee provided by the Swedish Development Agency, Sida, was considered as additional protection in the rating agency’s assessment. The innovative use of Sida’s guarantee allowed, for the first time, for the guarantee to be treated similarly to equity risk, increasing confidence for senior investors without diluting junior commitments. Specifically, the subordination ratios were calculated using the junior equity as well as the unused portion of the guarantee.

In the end, Mirova decided not to obtain the credit rating for the super senior tranche of this fund, given the rating would not have had the desired effect of increasing the attractiveness of the fund to institutional investors.

__Conclusion__ 
For fund managers that aim to attract institutional capital at scale, increasing the dialogue with rating agencies is crucial. By building on the experiences other fund managers have collected in the past, fund managers can avoid duplicating efforts, and accelerate progress.

The above analysis has focused on individual efforts of fund managers to obtain credit ratings on their work. Looking beyond individual funds, data transparency remains a broader issue. Convergence and others have argued repeatedly that DFIs and Multilateral Development Banks should share the payment track record of their portfolios more extensively. The reports recently released by the Global Emerging Markets Risk Database [Consortium](https://www.gemsriskdatabase.org/) are a step in the right direction. If more such data on credit performance of lending to private and public counterparts, default rates, as well as recovery rates for sovereign and sovereign-guaranteed lending is publicly released, this would immensely help those conducting credit rating exercises in emerging markets.

Obtaining a credit rating for a blended fund – Lessons Learned 

Bolivian Investment Management Ltd (BIM) is an impact investments manager with over 25 years of experience creating and managing 14 investment companies and specialized funds seeking a positive impact beyond financial return.

We spoke to Daniel Maldonado, Investor Relations Officer at BIM about how they engage in blended finance, how they measure impact, their priority sectors, and more.

__Can you tell us about BIM and how you engage in blended finance?__

BIM, established in 1997, is one of six companies within the Panamerican Group, a financial group established in 1994 in Bolivia. BIM was founded as an asset manager with a focus on investments that create impact beyond financial returns. In its early years, BIM managed multi-sectoral funds. However, in 2007, with the launch of Locfund—a regional local currency microfinance investment vehicle focused on Latin America and the Caribbean—BIM shifted its focus exclusively to the microfinance sector.

Although the term blended finance was not widely used in 2007, when the first version of the vehicle—Locfund L.P.—was launched, the fund’s structure already reflected many of its core principles. It was able to attract two private investors, drawn by the potential impact outcomes of Locfund. However, this interest was made possible only because those investors had previously worked alongside public capital providers.

The track record built through this initial experience allowed the management team to maintain relationships with prior investors. Still, in the successor vehicle, the only private investor represented just 4.8% of the total capital raised. Despite the positive financial and impact results of Locfund I, raising additional private funding for Locfund II proved to be a challenge.

By 2020, with more than 12 years of successful operations, the new and current version—Locfund Next—was launched. This iteration managed to raise a larger pool of capital and succeeded in bringing in private foundations whose participation was both material and catalytic to the fund’s launch. However, these foundations had impact mandates embedded in their bylaws, and Locfund Next continued to face difficulties in attracting "pure" private investors—those motivated primarily by risk-adjusted financial returns—in the financial inclusion space in Latin America and the Caribbean (LAC).  

Today, the effort to attract private capital remains ongoing. Experience has shown that when targeting private investors willing to take development-related risks in less conventional markets, a strong track record and critical mass are essential. Only then can vehicles like Locfund Next align with the risk-return expectations of private capital.

__Can you tell us more about Locfund Next? What are some of the outcomes/expected outcomes?__

Although the fund is in its fifth year of operations, it is expected to deliver the projected financial returns by its 10th anniversary.

Locfund Next is structured as an evergreen-like fund, allowing shareholders to enter and exit at the end of defined equity stages. The initial equity stage spans 10 years, with each subsequent stage lasting five years.

Preliminary results from the first cohort of equity investors have been positive, sparking renewed interest from potential investors. As of June 2025, Locfund Next has built a robust capital structure with the participation of 16 investors, including six purely private investors. All 16 investors, though, have at the core of its mission, the requirement of development outcomes. 

During this period, the fund has disbursed over $380 million across 279 transactions, reaching a total of 61 microfinance institutions (MFIs) throughout the region. Locfund Next has consolidated its position as a regional leader, becoming the Microfinance Investment Vehicle (MIV) with the widest MFI outreach at the same time, operating concurrently in 15 countries.

Furthermore, in alignment with its core development and impact mandate, Locfund Next was able to raise technical assistance resources from the same investors, in order for this fund to be deployed to the microfinance institutions to strengthen areas such as gender equality, asset and liability management, and corporate governance, among others. To date, Locfund Next has completed 147 Technical Assistance initiatives across the region through its Technical Support Facility – TSF, reducing the risk of the underlying portfolio of the fund.

This momentum is expected to attract greater participation from private investors during the second equity stage, anticipated around 2029–2030. 

__Can you tell us more about the challenges you’ve faced with attracting institutional investors to Locfund Next?__

The first challenge relates to scale. Both the size of the fund and the individual investment tickets must align with the mandates of institutional investors. Since the launch of Locfund I in 2007, and through the consistent growth of Locfund II and now Locfund Next, this challenge has been progressively addressed, resulting in a vehicle with sufficient critical mass to appeal to institutional capital.

The second challenge lies in the limited familiarity most institutional investors have with the microfinance sector. This often necessitates the inclusion of additional risk mitigation mechanisms to make the investment case viable. To address this, BIM has explored several alternatives, including the use of partial guarantees from development finance institutions (DFIs). These guarantees could, in turn, be supported by technical assistance funding from other DFIs—effectively creating a dual-layered blended finance structure to enhance investor confidence and facilitate further growth of Locfund Next’s operations. 

__How do you measure the impact of your blended finance investments?__

Given the nature of microfinance, Locfund Next’s portfolio inherently generates impact across multiple indicators. The fund focuses on attending to underserved populations through the microfinance institutions it supports, reaching over 40% of end clients located in rural areas across the region and targeting more than 50% of women among its final beneficiaries.

Locfund Next also aims to support the most vulnerable segments of the population. One key indicator of this is the average loan size to end clients, which currently stands at $1,400, reflecting the fund’s reach to low-income borrowers.

__What role do you see blended finance playing in the microfinance industry in LAC?__

The microfinance industry in LAC remains a relatively small segment within the broader financial systems of each country. The total outstanding microfinance portfolio in the region is estimated at approximately $52 billion, but there are around 132 million people without access to formal financial services. The industry has maintained a steady annual growth rate of around 10%, driven primarily by unmet demand. To sustain this level of growth, the sector requires approximately $5 billion in fresh capital each year.

Unfortunately, public investors alone are not able to meet this financing need, underscoring the critical role of blended finance as a catalytic solution.

The encouraging news is that, where managed effectively and with a clear focus on financial inclusion, the microfinance sector has consistently delivered positive and stable performance. In many cases, financial indicators within the industry are not only healthy but also outperform those of the traditional financial system. These results provide a compelling case for further blended finance transactions, where private investors can engage under conditions that align with their risk-return expectations, while also contributing to inclusive development in the region. 

__Do you apply a gender lens in your blended finance activities?__

Yes. While microfinance is inherently aligned with gender lens investing, BIM has made a deliberate effort to further emphasize this focus. As a result, Locfund Next was granted the status of a 2X Challenge Flagship Fund, and BIM recently became a signatory of the UN Women’s Empowerment Principles.

In practice, all microfinance institutions (MFIs) that Locfund Next has worked with are able to identify the proportion of women among their end-clients and the composition of their portfolio by gender. This gender-disaggregated data is monitored by Locfund Next on a monthly basis to ensure a clear understanding of the fund’s outreach to this key segment. On average, more than 60% of the end-clients served through the portfolio are women.

__How do you see BIM’s blended finance activities evolving in the future?__

We believe that our strong 15+ year track record has helped build a compelling case for attracting greater private sector participation. This has been achieved not only through the positive financial and impact outcomes of Locfund, but also by demonstrating the resilience and long-term sustainability of the microfinance industry. Looking ahead, we are confident that within the next five years, we can significantly expand private investor involvement, targeting a share of at least 50% among Locfund Next’s key stakeholders.

__What are some opportunities you see for blended finance in Latin America? What are some challenges?__

Large players, including global investment banks, have begun exploring investment opportunities more actively in so-called “exotic” markets. Latin America, in particular, has demonstrated its ability to deliver attractive returns with balanced and manageable risk profiles. Public records indicate that blended finance structures in the region have averaged issuance sizes of approximately $150 million, underscoring the growing appetite and scalability of such instruments. 

Sectors such as financial inclusion, renewable energy, and circular economies stand out as key industries capable of absorbing substantial amounts of capital while offering compelling returns. The success of previous blended finance structures led by these institutions paves the way for future opportunities to mobilize private capital into the region.

However, Latin America is also characterized by a history of political volatility and recurring episodes of instability. These challenges can deter more conservative investors, especially when assessing opportunities that seek to combine financial returns with broader development outcomes.


Learn how BIM engages in blended finance, how they measure impact, their priority sectors, and more.

BIM Member Spotlight with Daniel Maldonado

Earlier this year, Convergence hosted a peer-to-peer learning session for [Blended Finance Accelerator](https://www.convergence.finance/accelerator) grantees focused on fundraising for blended finance solutions at the nexus of climate and gender. This session offered Convergence grantees the opportunity to discuss challenges they faced and lessons learned while designing and investing in catalytic blended finance vehicles in the space. With funding support from Global Affairs Canada, this closed-door learning session brought together grantees, investors, and donors to explore the various aspects of fundraising for blended finance.

Key takeaways from the session:

__What funders look for in blended finance opportunities differs by mandate__ 
Grant funders and catalytic investors were represented in the session. For grant funders, development impact remains central to their decision making. They value clear communication of impact indicators, particularly those that are evidence-based, measurable, and comparable. Grant funders also have a preference for projects that use minimum concessionality to achieve high levels of development impact while aligning with policy priorities and providing transparency in how public funds are used.

Catalytic investors typically have flexible capital and can take different positions in blended finance structures, depending on their internal risk return impact analysis. For them, alignment with social outcomes is vital and usually the first point of decision making. They look for credible financial models, experienced fund managers, robust impact measurement systems, and blended structures that effectively catalyze other investors while remaining efficient and focused. Team track record and the ability to adapt and learn are also key factors in investment decisions.

__Design for complexity and communicate with simplicity__ 
Participants were in consensus that blended finance structures often require sophisticated layering of capital: grants, equity, subordinated capital, senior debt, and guarantees. Investors emphasized the importance of speaking directly to each capital provider to understand their expectations, whether they are concessional, commercial, or philanthropic, rather than utilizing a one-size-fits-all approach.

__Aggregation as a strategy to unlock capital for the missing middle__ 
One fund manager shared how aggregation is being used as a strategic tool to mobilize capital for community-driven, nature-based enterprises that typically fall in the “missing middle”; too small for traditional institutional capital, yet too large for microfinance. By pooling investments into a single facility investors can participate pari passu across a diversified portfolio of enterprises, operating in new and often higher-risk sectors such as ecotourism, sustainable fisheries, and regenerative aquaculture. This approach allows for diversification across geographies and business models, making it more attractive to commercial and impact investors alike. 

__Catalytic capital must be patient and purpose-driven__ 
Multiple participants emphasized the importance of concessional capital that is long-term, impact-first, and flexible. In markets where cash flows are uncertain and outcomes can take years to materialize, like forest restoration or climate-smart agriculture for example, long tenors are often needed. One grantee shared that while some commercial investors cap their exposures, that is where patient concessional capital can come in and help extend fund maturities. This is often necessary for long-term climate investments in emerging markets in sectors such as agriculture. This capital also provides the flexibility to respond to external shocks, evolving risks, and the adaptive nature of blended finance structures in frontier markets. As one participant noted, “patient capital is not just a nice-to-have, it is a requirement when you're working with communities, nature, and governments.”

__Fundraising is nonlinear, expect setbacks and build redundancy__ 
Several participants shared that they faced a variety of setbacks, including unforeseen regulatory issues, shifting interest rate environments, and fiscal policy changes that disrupted fundraising plans, even after soft commitments and board approvals. Participants also noted that various exogenous factors, such as budget deadlines, can be used as alignment tools to accelerate closing timelines. A broad and diverse investor pipeline was recognized as essential for risk mitigation. One participant shared that “what [they] thought would be the hardest part, long tenors, actually was not. The real challenge was synchronizing investor timelines and managing shifting macro conditions.”

__Convert impact into investment language__ 
A common hurdle, especially for grantees coming from the conservation or development space, was translating impact narratives into investor-oriented language. Creating a compelling investment pitch, with financial projections, risk management strategies, and clear pipeline visibility is critical to build credibility with commercial capital providers.

__The climate-gender nexus is gaining traction__ 
Participants acknowledged that climate metrics are no longer enough on their own. Increasingly, gender outcomes are being demanded not just as side benefits but as integral to a fund’s theory of change. Many funds now incorporate gender metrics at both the fund and investee level. Most actors apply basic gender standards, such as the 2X Challenge, across all investments. There is growing interest in embedding gender equity into pipeline sourcing, governance, and performance metrics. One participant noted that “standardized impact metrics, particularly for gender, are becoming essential,” driving transparency and supporting comparisons between deals.

__Direct vs. fund-level investing__ 
For many impact investors, especially those without a local presence, fund-level investments offer better access to emerging market pipelines in sectors like regenerative agriculture or the blue economy, where due diligence, local knowledge, and deal flow aggregation are critical. Direct investing on the other hand, is often reserved for shorter-tenor working capital structures where the investor has a trusted relationship with the enterprise. For donor investors, funds offer a scalable route to reach qualified investees.

__Partnerships must be purposeful__ 
While strategic partnerships can enhance a fund’s credibility or technical capacity, fundraising partnerships rarely move the needle unless they come with concrete introductions and influence. Impact measurement, pipeline development, and technical assistance delivery are meaningful areas where partnerships can add operational value.

__Closing reflections__ 
As the blended finance space evolves, fund managers are increasingly being asked to demonstrate strategic clarity, impact rigor, and financial discipline while operating in increasingly complex markets. Despite growing investor interest, participants reiterated the importance of staying grounded in the end goal: building viable, high-impact solutions that mobilize capital for climate resilience and gender equity at scale.

The session served as a valuable reminder that while structures matter, the real measure of success is the ability to deploy capital into meaningful outcomes, supporting communities, protecting ecosystems, and building climate resilience with gender equity at the core. 
Convergence’s Blended Finance Accelerator has awarded $24 million in grant funding to over 79 solutions to date across seven initiatives. The program supports solutions across various levels of maturity including early design, proof-of-concept, and expansion. In addition to catalytic grant funding Convergence also provides acceleration support market intelligence, networking opportunities, and produces thought leadership that collectively benefits the entire ecosystem of blended finance practitioners. 

Learn more about the [Blended Finance Accelerator](https://www.convergence.finance/accelerator).

Learn about the key takeaways from our peer-to-peer learning session for Blended Finance Accelerator grantees focused on fundraising for blended finance solutions at the nexus of climate and gender.