Scaling for Sustainability: Blending Development Finance with Insurance and Pension allocations

__Thursday, June 25, 2026, 3:30 PM - 5:00 PM UK Time__

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Convergence and Chemonics are co-hosting an in-person event titled Scaling for Sustainability: Blending Development Finance with Insurance and Pension allocations during London Climate Action Week in London.

Despite growing commitments to climate and sustainable investment, insurance companies and pension funds only allocate limited capital  to emerging and frontier markets. Structural barriers—including risk perception, regulatory constraints, lack of investment-ready pipelines, and limited alignment between development finance structures and institutional mandates—continue to restrict capital mobilisation.  

This event, co-organised by Triple Effect Capital and Convergence, aims to bridge these gaps by facilitating dialogue between development finance actors and institutional asset owners. The discussion will focus on practical mechanisms to scale blended finance structures, improve risk sharing, and design investment pathways for scaling institutional participation in climate finance.  

*Registration for this event is now closed. If you'd like to be waitlisted, please reach out to your Relationship Manager.*


Scaling for Sustainability: Blending Development Finance with Insurance and Pension Allocations

Join Convergence and Chemonics for an in-person event titled Scaling for Sustainability: Blending Development Finance with Insurance and Pension allocations during London Climate Action Week in London.

Blending Development Finance with Insurance and Pension

Indo-Pacific NGO Blended Finance Accelerator: Information Session

__Monday, June 15, 2026 at 10:00PM ET/ Tuesday, June 16, 12:00PM AEST__

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Join us virtually on June 15, 2025 for an information session on the [Indo-Pacific NGO Blended Finance Accelerator](https://www.convergence.finance/accelerator/dfatngo)'s second call for proposals. 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 the 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 __July 20, 2026__. 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

2X Investor Meetup in Peru

__Wednesday, May 27, 2026, 3:45 PM - 5:00 PM Peru Standard Time__

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__As capital providers, what bold actions can we take—or champion—to accelerate change and close the gender gap?__

Convergence is co-hosting an investor meet-up and networking reception on May 27 in Lima, Peru during the GLI Forum LATAM alongside 2X Global and Banco ProCredit Ecuador, in partnership with Pro Mujer, where investors can connect, collaborate, and explore concrete strategies to advance gender equity in finance.

__Why Attend?__ 
 

Latin America is proving that strong roots build global reach—and the investors making that case will be in this room. Dive into engaging discussions with industry peers, explore fresh perspectives on gender lens investing, and uncover new pathways for impactful collaboration in the gender finance space.

*Seats for this event are limited. Please RSVP using [this form](https://docs.google.com/forms/d/e/1FAIpQLSeKuvBQVaPr_62Tc4nfJ39mWLB6SpUjcoe30FV_5MsOySlccA/viewform) and await confirmation from our team.*

Networking Reception and Investor Meetup in Peru

Join Convergence alongside 2X Global and Banco ProCredit Ecuador, and Pro Mujeris for an investor meet-up and networking reception on May 27 in Lima, Peru during the GLI Forum LATAM.

Ecosperity Evening Reception

__Thursday, May 21, 2026, 5:00PM - 7:00PM Singapore Time__

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Convergence, in partnership with FinDev Canada is hosting a leaders’ networking reception to reflect on key insights, share perspectives, and connect with peers on the sidelines of Ecosperity Week in Singapore.

This reception will bring together senior leaders and ecosystem partners from across the public, private, and philanthropic sectors for an evening of dialogue and networking. It will be an opportunity to exchange reflections from the week’s discussions, explore priorities and opportunities ahead, and consider how we can collectively advance the agenda of scaling blended finance across the region.

__Program__ 
__5.00 PM__: Welcome & Opening Remarks 
__5.10 PM__: Participant Sharing 
__5.35 PM__: Networking 
__7.00 PM__: Close 

*This event is booked out, for enquiries please contact asia@convergence.finance.*

Blended Finance Evening Reception in Singapore

Deal Connect: May 2026

__Wednesday, May 20, 2026, 9:00 AM - 10:00 AM ET__

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Join Convergence for an informative webinar that will connect you to a selection of blended finance investment in emerging markets. During this interactive session, Convergence members will share an overview of 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: 
 
__Regenerative Capital Fund (ReCa)__ 
The Regenerative Capital Fund (ReCa) is a USD 400 million open-ended, blended equity fund that invests in scalable agribusinesses in Sub-Saharan Africa with a focus on regenerative production, agri-infrastructure, and enabling technologies. The fund focuses on adaptation-first investments with mitigation and biodiversity co-benefits and integrates smallholders and women/youth into value chains.

__Nordic Impact Funds: Evergreen Fund, Impact-Linked Finance and Technical Assistance__ 
Nordic Impact Funds is an open, multi-fund blended finance facility combining Impact-Linked Finance (ILF) and Technical Assistance (TA) to incentivize and enable agricultural SMEs across East Africa to build climate resilience, improve food security and nutrition, and expand inclusion

Join Convergence for our next Deal Connect exploring Regenerative Capital Fund (ReCa), and Nordic Impact Funds: Evergreen Fund, Impact-Linked Finance and Technical Assistance.

Deal Connect

From Capital Mobilization to Risk Structuring: Integrating Insurance into Blended Finance into Practice

__Wednesday, May 20, 2026, 2:00PM - 3:00PM Singapore Time__

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Join Convergence, Global Asia Insurance Partnership (GAIP), and the Singapore Sustainable Finance Association (SSFA), for a high-level roundtable on “From Capital Mobilization to Risk Structuring: Integrating Insurance into Blended Finance into Practice” on the sidelines of Ecosperity week in Singapore.  

__Background__ 

As blended finance continues to mobilize capital for climate adaptation and resilience across Asia, a critical challenge is coming into sharper focus: success depends not only on mobilising capital, but on how risk is understood, structured, and managed within transactions. This closed-door roundtable will bring together senior leaders from banking, development finance, insurance, and project development to explore how risk is currently addressed in real-world deals, why insurance remains underutilized despite its strong potential, and what practical solutions could help change that. 

Focusing on climate and resilient infrastructure, MSME finance, and agriculture and food systems, the session is designed to be forward-looking, solution-oriented, and grounded in real market experience—moving beyond diagnosis to identify how insurance can better support and strengthen blended finance in practice.

*Due to limited capacity, this is an invitation-only event. If you are intested in attending, please contact asia@convergence.finance.*

From Capital Mobilization to Risk Structuring: Integrating Insurance into Blended Finance in Practice

Join Convergence, Global Asia Insurance Partnership (GAIP), and the Singapore Sustainable Finance Association (SSFA), for a high-level roundtable on “From Capital Mobilization to Risk Structuring: Integrating Insurance into Blended Finance into Practice” during Ecosperity week in Singapore.  

Integrating Insurance into Blended Finance in Practice

Roundtable on Blended Finance: Mobilizing Institutional Investment for Climate Impact in Emerging Markets

Thursday, May 7, 2026, 9:00AM - 10:30AM CET

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Convergence and responsAbility invite you to an in-person roundtable on blended finance: Mobilizing Institutional Investment for Climate Impact in Emerging Markets, being hosted during the Zurich Climate Week in Zurich.

The event will bring together institutional investors as well as impact asset managers to discuss how to design blended finance vehicles that can meet institutional investors where they are. The goal of the roundtable is to facilitate knowledge exchange and share practical experiences.

__Agenda__
 

- __9am: Opening Remarks: Camille Savoie, responsAbility__
 

- __9:05am: Market Trends presentation by Regina Vasarais, Convergence__
 

- __9:10am: Panel Discussion__
- Regina Vasarais, Convergence (Moderator) 
- Beat Wüst, CIO / Head Asset Management, Gastrosocial Pensionskasse 
- Annabel Jennings, Impact Debt Portfolio Manager, Ashmore 
- Adnane Lekhel, Head of Institutional Structuring, Senior Portfolio Manager, Amundi 
- Antonia Sariyska, UBS WM CIO Sustainable Investing
 

- __10:00am: Break-out groups__ 
- Case study 1: Global Climate Partnership Fund, facilitated by David Diaz, responsAbility 
- Case study 2: BlueOrchard InsuResilience Investment Fund, facilitated by Alessandra Nibbio, BlueOrchard 
 

*Registration is open to Convergence members and institutional investors, with a maximum of two people per organization.*

Join Convergence and responsAbility for an in-person roundtable on blended finance: Mobilizing Institutional Investment for Climate Impact in Emerging Markets, being hosted during the Zurich Climate Week in Zurich.

Local Capital Solutions for Blended Climate Finance in Southeast Asia

__Thursday, April 30, 2026, 10:00AM - 11:00AM Singapore Time__

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Convergence, in partnership with the Catalytic Climate Facility (CC Facility) Learning Hub, is hosting a webinar on April 30, 2026 at 10:00 AM (Singapore time) on strategies to mobilize domestic capital for climate blended finance. The session will draw on insights from the Learning Hub’s report on [Domestic Capital Mobilization in Southeast Asia](https://www.ccfacility.org/learning-hub/domestic-capital-mobilization-climate-finance-southeast-asia-report), with a focus on Indonesia, the Philippines, and Vietnam.

The presentation will be followed by a panel discussion featuring grantees from Convergence’s Asia Climate Solutions window, who will share practical lessons from deploying local capital solutions.

__Featured Panelists:__
- Erik Chan, Southeast Asia Director, Allotrope Partners
- Elmedina Krilasevic, Asia Regional Director, Impact Earth

Join us for a webinar on April 30, 2026 at 10:00AM (Singapore time) for a webinar on local capital solutions for blended climate finance in Southeast Asia.

Blended Climate Finance in Southeast Asia

a4fm apr26 infosession web ASIA

__Wednesday, April 29, 2026, 8:00AM - 9:00AM SGT__

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(Le français suit/French follows)

Join us virtually for an information session on the [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm). A4FM offers a comprehensive suite of support, including skill building, catalytic grant awards and on-going acceleration support required to structure and launch blended finance solutions. This program is implemented by Convergence with the support of Global Affairs Canada.

Register for the webinar to:
- Learn about the application process for the A4FM and gain insight into how to apply, eligibility criteria, and evaluation criteria
- Learn key tips for preparing a strong application and common pitfalls to avoid
- Have the opportunity to ask questions directly to the A4FM team!

A4FM's second call for proposals is now open. The deadline to submit concept notes is May 25, 2026. Learn more and apply [here](https://www.convergence.finance/accelerator/a4fm)!

__Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM) : Séance d'information (Côte Ouest/Asie)__

Nous vous invitons à vous joindre à nous virtuellement pour une séance d'information sur [l'Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM)](https://www.convergence.finance/accelerator/a4fm). L'A4FM offre une gamme complète de services de soutien, notamment le renforcement des compétences, l'octroi de subventions catalytiques et un soutien continu à l'accélération nécessaire pour structurer et lancer des solutions de financement mixte. Ce programme est mis en œuvre par Convergence avec le soutien d'Affaires mondiales Canada.

Inscrivez-vous au webinaire pour:
- Découvrir le processus de candidature à l'A4FM et obtenir des informations sur la manière de postuler, les critères d'éligibilité et les critères d'évaluation
- Obtenir des conseils clés pour préparer une candidature solide et connaître les pièges courants à éviter
- Avoir l'occasion de poser des questions directement à l'équipe de l'A4FM!

L'A4FM est désormais ouvert, et la date limite pour soumettre les notes de concept est le 25 mai 2026. En savoir plus et postuler [ici](https://www.convergence.finance/accelerator/a4fm)!

Blended Finance Accelerator for Fund Managers (A4FM): Info Session (West Coast/Asia) 

https://www.youtube.com/watch?v=ZEtwlWnZhTI

Watch a replay of our virtual information session on the [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm). A4FM offers a comprehensive suite of support, including skill building, catalytic grant awards and ongoing acceleration support required to structure and launch blended finance solutions. This program is implemented by Convergence with the support of Global Affairs Canada.

The webinar gave attendees the chance to:
- Learn about the application process for the A4FM and gain insight into how to apply, eligibility criteria, and evaluation criteria.
- Learn key tips for preparing a strong application and common pitfalls to avoid.
- Ask the A4FM team questions directly!
 
The A4FM is now accepting applications. The deadline to submit concept notes is May 25, 2026. Learn more and apply <a href="https://www.convergence.finance/accelerator/a4fm">here</a>.
 
Presentation slides can be found in the Documents tab above.

Information Session A4FM - 2nd Call for Proposal (West Coast Asia)

Join us for an info session on the Blended Finance Accelerator for Fund Managers (A4FM) to learn about the application process, gain insight into how to apply, eligibility criteria, and evaluation criteria, and more.

A4FM: Info Session (West Coast/Asia)

Member Training: Integrating Gender and Climate in Blended Finance - From Strategy to Implementation

__Tuesday, 28 April, 2026 at 9:00AM ET__

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Integrating gender and climate objectives is increasingly recognized as essential to achieving sustainable and inclusive development outcomes in blended finance. By intentionally embedding gender considerations into climate investments, practitioners can unlock more equitable access to finance, strengthen resilience, and improve overall investment performance. However, despite growing momentum, many blended finance vehicles still face challenges in translating high-level gender and climate strategies into practical, scalable implementation approaches.

The session will open with key insights, data, and trends on gender and climate in blended finance, drawing on Convergence’s market intelligence. This segment will highlight how gender and climate objectives are being integrated across sectors, the instruments and structures most commonly used, and the opportunities and challenges in advancing gender-responsive climate investments.

This will be followed by two 20-minute case study presentations, each demonstrating a distinct approach to structuring and scaling blended finance vehicles that integrate gender and climate objectives:

__Case Study 1: EcoEnterprises Fund IV__ 

A blended finance fund investing in nature-based SMEs, designed to deliver both environmental and gender outcomes. This case will explore fund structuring, the role of catalytic capital, and how a gender lens is embedded throughout the investment process.

__Case Study 2: MCE Empowering Sustainable Agriculture (MESA) Fund__ 

A blended finance vehicle supporting agricultural enterprises and smallholder farmers through financial intermediaries and risk-sharing mechanisms. This case will examine how the fund advances women’s economic participation while strengthening climate-resilient agricultural value chains.

*This event is complimentary for members. Please contact your Relationship Manager to receive the promo code.*

Join us for our next member training exploring how to integrating gender and climate in blended finance: from strategy to implementation.

a4fm apr26 infosession web EC

__Tuesday, April 28, 2026, 8:00AM - 9:00AM ET__

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(Le français suit/French follows)

Join us virtually for an information session on the [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm). A4FM offers a comprehensive suite of support, including skill building, catalytic grant awards and on-going acceleration support required to structure and launch blended finance solutions. This program is implemented by Convergence with the support of Global Affairs Canada.

Register for the webinar to:
- Learn about the application process for the A4FM and gain insight into how to apply, eligibility criteria, and evaluation criteria
- Learn key tips for preparing a strong application and common pitfalls to avoid
- Have the opportunity to ask questions directly to the A4FM team!

A4FM's second call for proposals is now open. The deadline to submit concept notes is May 25, 2026. Learn more and apply [here](https://www.convergence.finance/accelerator/a4fm)!

__Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM) : Séance d'information (Côte Est/Europe)__

Nous vous invitons à vous joindre à nous virtuellement pour une séance d'information sur [l'Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM)](https://www.convergence.finance/accelerator/a4fm). L'A4FM offre une gamme complète de services de soutien, notamment le renforcement des compétences, l'octroi de subventions catalytiques et un soutien continu à l'accélération nécessaire pour structurer et lancer des solutions de financement mixte. Ce programme est mis en œuvre par Convergence avec le soutien d'Affaires mondiales Canada.

Inscrivez-vous au webinaire pour:
- Découvrir le processus de candidature à l'A4FM et obtenir des informations sur la manière de postuler, les critères d'éligibilité et les critères d'évaluation
- Obtenir des conseils clés pour préparer une candidature solide et connaître les pièges courants à éviter
- Avoir l'occasion de poser des questions directement à l'équipe de l'A4FM!

L'A4FM est désormais ouvert, et la date limite pour soumettre les notes de concept est le 25 mai 2026. En savoir plus et postuler [ici](https://www.convergence.finance/accelerator/a4fm)!

Blended Finance Accelerator for Fund Managers (A4FM): Info Session (East Coast/Europe)

https://www.youtube.com/watch?v=lrg1UKSkKKg

Watch a replay of our virtual information session on the [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm). A4FM offers a comprehensive suite of support, including skill building, catalytic grant awards and ongoing acceleration support required to structure and launch blended finance solutions. This program is implemented by Convergence with the support of Global Affairs Canada.

The webinar gave attendees the chance to:
- Learn about the application process for the A4FM and gain insight into how to apply, eligibility criteria, and evaluation criteria.
- Learn key tips for preparing a strong application and common pitfalls to avoid.
- Ask the A4FM team questions directly!
 
The A4FM is now accepting applications. The deadline to submit concept notes is May 25, 2026. Learn more and apply <a href="https://www.convergence.finance/accelerator/a4fm">here</a>.
 
Presentation slides can be found in the Documents tab above.

Information Session A4FM - 2nd Call for Proposal (East Coast EU)

A4FM: Info Session (East Coast/Europe)

EAIF 2026 Banner

__April 21-24, 2026, Nairobi, Kenya__

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Organised by the Alliance for Rural Electrification, The [ARE Energy Access Investment Forum (EAIF)](https://www.eaif.energy/) is the top annual investment event, fostering partnerships for the purpose of renewable electrification, including energy access, productive use, commercial and industrial uses of power and the green energy transition. With a track-record since 2016, ARE aims to mobilize 500 people in-person and over 1,000 people virtually for a total of more than 1,500 participants. This special EAIF edition will bring together private and public investors, industry leaders from both the energy and related sectors, utilities and government officials, for an exclusive EAIF experience. 

Convergence is a supporting partner of EAIF 2026.

ARE Energy Access Investment Forum 2026

Don’t miss the ARE Energy Access Investment Forum (EAIF) in Nairobi!

ARE Energy Access Investment Forum

*Singapore, May 20, 2026* - Convergence announces the fourth cohort of its Asia Climate Solutions (ACS) Design Grant, at a networking reception hosted at the Australian High Commission during Ecosperity Week. ACS will support two new blended finance solutions targeting the blue economy and clean energy transition across Southeast Asia and South Asia with proof-of-concept and feasibility study grants.

The ACS Design Grant supports pioneering blended finance solutions focused on critical climate mitigation and adaptation sectors across Asia. The fourth call for proposals prioritized solutions mobilizing private capital to address climate vulnerabilities across specific sectors such as the blue economy and clean energy.

“We see strong demand from regional funders alongside significant unmet financing needs in these sectors” says Leah Pedersen, Senior Director, Blended Finance Accelerator at Convergence. “With these grants, the ACS program aims to help catalyze greater private investment into the blue economy and clean energy solutions, which are critical for Asia’s climate transition.”

The ACS program is supported by five anchor donors: the Monetary Authority of Singapore, Australia’s Department of Foreign Affairs and Trade, Olayan Group, UBS Optimus Foundation, and The Rockefeller Foundation. It aims to demonstrate how catalytic capital from family offices, foundations, and donor agencies can unlock scalable blended finance approaches to bridge the climate financing gap in Asia.

__Introducing the Grantees:__

__Mana Impact__ has been awarded a proof-of-concept grant to support the design and scale-up of [Mana Blue Planet](https://www.manaimpact.com/investment), a $50 million blended finance debt facility addressing the financing gap for nature-positive small and medium-sized enterprises (SMEs) in Southeast Asia’s blue economy. The facility targets sectors including regenerative aquaculture and agriculture, waste valorization, and nature-based solutions, offering flexible debt instruments such as trade finance, working capital, asset financing, and project finance. Its blended capital structure combines commercial, concessional, and first-loss capital to de-risk investments and mobilize private capital. It is complemented by Mana Studios, a technical assistance facility for strengthening investment readiness. A pilot facility has already achieved a first close from impact investors.

The fund aims to finance SMEs and support approximately 50,000 beneficiaries, including farmers, fishers, and coastal communities, while contributing to ocean health and ecosystem restoration.

This grant will support the legal structuring and formalization of the scale-up vehicle and fund manager, strengthen pipeline development, deepen engagement with commercial investors, and support the development of a gender impact plan.

__Schneider Electric__ has been awarded a feasibility study grant to support the structuring of [Schneider Electric Energy Access Asia II](https://www.se.com/ww/en/about-us/sustainability/impact-investing/) (SEEAA-II), a $60–80 million blended finance equity fund addressing the early-stage financing gap for clean energy ventures across South and Southeast Asia, including India, Indonesia, Vietnam, and the Philippines. The fund targets scalable, technology-enabled business models across energy generation, energy efficiency, energy management, circular economy, and green finance, using a blended finance structure in which junior concessional equity provides downside protection to commercial investors and helps mobilize private capital. It is further strengthened by Schneider Electric’s global network, providing technical expertise and access to a broad ecosystem of partners.

SEEAA-II builds on the success of Fund I, which raised and deployed approximately €20.9 million across 13 companies, demonstrating the commercial viability and impact potential of early-stage investments in underserved markets. The fund is expected to reduce around 3 million tonnes of CO₂ emissions, benefit 3.5 million people, and create approximately 5,000 jobs. 

This grant will support the refinement of the fund’s blended capital structure and strengthen fundraising efforts through engagement with concessional and commercial investors by leveraging Convergence’s network.

__About Convergence and the Blended Finance Accelerator__ 

Convergence is the global network for blended finance. Convergence’s Blended Finance Accelerator (BFA) 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 the BFA, Convergence mobilizes private sector investment in emerging markets and developing economies by producing actionable data and guidance and convening key stakeholders. Convergence’s global membership includes ~200 public, private, and philanthropic investors as well as sponsors of transactions and funds.

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

Convergence announces the fourth cohort of its Asia Climate Solutions (ACS) Design Grant, at a networking reception hosted at the Australian High Commission during Ecosperity Week.

Funding for blended finance solutions in Asia

Convergence awards funding to blended finance solutions advancing the blue economy and clean energy transition in Asia

Convergence Blended Finance, in partnership with Global Affairs Canada (GAC), announces the first cohort of fund and asset managers selected under the Blended Finance Accelerator for Fund Managers (A4FM).

First cohort of A4FM awardees announced

Convergence and Government of Canada award six fund managers support to structure and launch blended finance vehicles

Catalyst Fund is a venture capital fund and venture builder that partners with founders developing high-impact climate adaptation solutions. One of Africa’s most active adaptation investors, their portfolio spans pre-seed to Series A startups across critical sectors, including climate-smart agriculture and food systems, climate insurance, waste management, clean energy, and water management. They are currently present across nine African countries.

![Catalyst Fund’s Catalyst Fund Resilience I](//images.ctfassets.net/4cgqlwde6qy0/4eIkrWvTnNz3X57fhEGUC0/8ea68dc5a049db264bacea7a9e597f96/Bekia8.jpg)
*Portfolio company Bekia (Egypt), waste collection*

The Catalytic Climate Finance Facility (CC Facility) supported the Catalyst Fund’s Catalyst Fund Resilience I as it scaled.

In this interview, Maelis Carraro, Founder and Managing Partner, shares insights on the initiative’s challenges, impact, and future.

__What is the solution?__

Catalyst Fund Resilience I backs mission-driven, local, and women-led ventures that build the resilience of vulnerable communities facing climate risks. It targets three pillars: sustainable livelihoods (e.g., climate-smart agriculture), climate-smart essential services (e.g., clean energy, water, waste, healthcare, mobility), and fintech for climate resilience (e.g., insurance, climate data).
![Catalyst Fund’s Catalyst Fund Resilience I](//images.ctfassets.net/4cgqlwde6qy0/2nxzzwJjTvuPlAasEWyzP9/3598f64476b606d23e9cc30535f1595a/FarmToFeed6.jpg)
*Portfolio company Farm to Feed (Kenya), post-harvest waste avoidance*

Catalyst Fund combines catalytic and commercial capital through a three-tiered structure (Senior, Junior A, Junior B), offering downside protection for senior limited partners (LPs) while maintaining upside participation across the capital stack. Venture building is core to its model, delivered through a team of ex-operators, supported by [BFA Global](https://bfaglobal.com/). Each startup receives approximately USD 200,000 inpre-seed funding: USD 150,000 in cash and USD 50,000 in human capital via bespoke venture-building support.

Its approach blends financial returns with measurable impact, reaching over 560,000 users to date. By bridging the early-stage capital gap for adaptation solutions, Catalyst Fund enables scalable innovation in sectors traditionally overlooked by commercial venture capital.

![Catalyst Fund Resilience I](//images.ctfassets.net/4cgqlwde6qy0/2Vas9jNg5Nnu6yXS4EI8o3/835f514812e656e1a30f943a8cb50323/KeepItCool7.jpg)
*Portfolio company Keep it Cool (Kenya), white-meat sustainable cold-chain*

__What challenges have you faced?__

The greatest challenge was fundraising in a market where climate adaptation is still poorly understood and perceived as non-investable. Many investors, particularly commercial and institutional LPs, struggled to define adaptation, questioned pipeline viability, and doubted whether early-stage adaptation startups in Africa could generate returns within a traditional VC timeframe. We had to reframe adaptation not as charity or public sector territory, but as a growing commercial opportunity set. Our initial investments then demonstrated that early-stage adaptation investing in Africa can be both impactful and commercially viable.

![Catalyst Fund Resilience I ](//images.ctfassets.net/4cgqlwde6qy0/6CQDZ4XOlh16ojjvGvbBgR/00bbcd78e607dbb7fa8c59759f3ded11/IMG_20250212_170510.jpg)
*Portfolio company Noornation (Egypt), sustainable energy and water access*

Designing an investor-aligned blended structure was also complex. We needed to balance protection for senior capital with upside for all tranches, while keeping the structure simple and familiar enough to pass investment committees. Finally, scaling the fund required rapid institutional upgrades across ESG, impact, governance, and compliance to meet development finance institution (DFI) standards. As a first-time equity fund, this meant building systems and policies in parallel with fundraising and investing. We managed these challenges through catalytic support, a disciplined investment strategy, and deep engagement with LPs.

__How did funding from the CC Facility support the development of the solution?__

Funding from the CC Facility was catalytic at a critical stage. It enabled Catalyst Fund to absorb upfront legal, structuring, and operational costs associated with scaling a first-time, blended finance VC fund. The support also enabled upgrades to our ESG and impact frameworks, including a full Environmental & Social Management System, gender strategy, and quarterly reporting infrastructure, which are key elements for DFIs and institutional LPs.

In addition, the CC Facility enabled the hiring of key team members needed for deploying investments as we continued to fundraise.

![Catalyst Fund Resilience I](//images.ctfassets.net/4cgqlwde6qy0/3ShGELGmNqhKNakicoHMNv/5857cbca40016340b11a4241e4b8bd02/Team_Photo.jpg)
*Portfolio company Octavia (Kenya), Direct Air Capture*

Finally, the CC Facility’s flexibility allowed us to stay focused on execution while building the Fund’s long-term viability. Without this support, our ability to close the fund, deploy capital, and demonstrate real-world results would have been materially delayed, limiting our ability to attract additional capital and support early-stage adaptation startups across Africa.

__What is the impact so far?__

Catalyst Fund has invested in 26 early-stage climate adaptation startups across nine African countries and 10 sectors. Portfolio companies have reached over 500,000 users, 47% of whom are women, and created more than 1,000 jobs. Together, they sustainably manage over 300,000 hectares of land, avoid 10,000+ tonnes of CO₂ annually, and serve low-income communities with climate resilient services like cold storage and drought resistant farming inputs.

Financially, these companies have generated over USD 12.3 million in annual revenue and raised over USD 30 million in follow-on funding, a 4x multiple of Catalyst Fund’s initial capital. The Fund has shown strong early performance for its 2023 vintage, with portfolio revenue growing 1.5–2x annually. In practice, the Fund has validated that climate adaptation is investable, demonstrating strong deal flow, tangible impact, and commercial viability.

![Catalyst Fund Resilience I](//images.ctfassets.net/4cgqlwde6qy0/4Q7cn3aDlLzeT74xFTHJpm/b27a52d468d2439fcd5b74a042750dc2/Scrapays.jpeg)
*Portfolio company Scrapays (Nigeria), waste collection*

By combining capital with deep venture-building support, Catalyst Fund de-risks early-stage adaptation ventures, enabling them to scale. It is considered one of Africa’s most active adaptation investors, setting benchmarks in climate impact, gender equity, and early-stage innovation. The Fund’s model has shifted perceptions among LPs and founders alike, showing that resilience can drive both returns and inclusive growth.

![Catalyst Fund Resilience I](//images.ctfassets.net/4cgqlwde6qy0/6HDa9CE43P06UgXuL1mF0P/81ce834380d915e6a9036552e4ddd027/ZebraCropbank6.jpg)
Portfolio company Zebra Cropbank (Nigeria), post-harvest storage and farmer financing

__What’s next?__

As the Fund enters a scale phase, our next priorities are threefold: (1) finalize fundraising; (2) deploy into the remaining pre-seed and follow-on rounds, targeting 40+ companies in total; and (3) continue building the evidence base for climate adaptation investing.

In parallel, Catalyst Fund is strengthening its exit strategy, working closely with later-stage investors and corporates to create mergers and acquisitions and secondary opportunities. Internally, we will continue refining our ESG, gender, and impact frameworks, as well as deepening our regional networks for sourcing, venture building, and exits. Finally, we aim to share learnings widely to accelerate the broader growth of adaptation investing in Africa. Catalyst Fund has proven that adaptation is investable. Now, the goal is to mainstream it.

![Catalyst Fund Resilience I](//images.ctfassets.net/4cgqlwde6qy0/44ullmk1DP5hdvLe9Wj7HH/b39438af72616f1a39b3a06d5aed0fb5/IMG_2223.jpg)
*The Catalyst Fund team*


Grantee Insights - Blue Alliance Blended Finance Vehicle

Read our grantee impact story on Catalyst Fund Resilience I.

Grantee Impact Stories - Catalyst Fund Resilience I

Grantee Insights - Catalyst Fund Resilience I

![Fig1 FI db blog](//images.ctfassets.net/4cgqlwde6qy0/7Il3DmPtcQK5z7u09XeeDE/cfdd6f6a536e764f26bcf09768bd8ec5/Fig1_FI_db_blog.png)
*Figure 1: Annual deal count and aggregate financing of blended transactions involving financial institutions within Convergence Market Data, 2014-2024*

Financial institutions (FIs) occupy a unique position in blended finance. Unlike transactions that finance a single project or company, these blending arrangements support the balance sheets of various FIs, enabling them to expand lending to underserved borrowers such as small and medium-sized enterprises (SMEs), climate-focused businesses, and low-income households. Through this intermediary model, a single transaction can reach thousands of end beneficiaries.

To date, Convergence Market Data has recorded 301 blended finance transactions involving FIs, totaling $30.1 billion in aggregate financing — a figure that has grown significantly as development finance institutions (DFIs) and investors increasingly [use](https://www.convergence.finance/resource/state-of-blended-finance-2024/view) financial intermediaries to deploy capital at scale. In Convergence Market Data, FIs refer to regulated entities that provide financial services and allocate capital within domestic markets, including commercial banks, microfinance institutions, and non-bank financial institutions.

Convergence’s latest [data brief](https://www.convergence.finance/resource/blending-arrangements-with-financial-institutions/view) (paywall) explores how blended finance has been used to support FIs and examines the distinctive characteristics of these transactions. Drawing on an analysis of deals captured in Convergence Market Data and interviews with industry stakeholders, the brief highlights how blending arrangements with FIs operate, the types of arrangements commonly used, and the role these transactions play in [mobilizing](https://www.worldbank.org/en/topic/financialinclusion/overview?) capital to underserved borrowers.

## Highlights from the Brief
 

| Figure 2 | Figure 3 |
| ---------- || ---------- |
| ![Fig2 FI db blog](//images.ctfassets.net/4cgqlwde6qy0/5yx0XWnu8VuTtjkkqtNjWn/7e23c582950055ab658e6e9982a2b142/Fig2_FI_db_blog.png) | ![Fig3 FI db blog](//images.ctfassets.net/4cgqlwde6qy0/5UJA84zedJftyyUil8GpFa/a5816fbc94e0d1aba33f454ddb92e3b3/Fig3_FI_db_blog.png) |
| *Top 10 commercial investors in blended FI transactions by number of commercial capital commitments* | *Top 10 concessional investors in blended FI transactions by number of concessional capital commitments* |

__DFIs anchor FI blended finance transactions__

DFIs and multilateral development banks (MDBs) play a defining role in these arrangements, frequently acting as both providers of concessional capital and senior commercial investors within the same transaction. Concessional capital is often delivered through dedicated institutional facilities or concessional windows, for example International Finance Corporation (IFC)’s [Women Entrepreneurs Finance Initiative](https://www.ifc.org/en/what-we-do/sector-expertise/blended-finance/sme-finance-and-gender#wefi) (We-Fi) is designed to invest alongside the institution's own balance sheet. This dual role means the leading concessional investors in FI blending arrangements closely mirror the leading commercial investors — institutions such as IFC and the Dutch Entrepreneurial Development Bank (FMO) consistently appear across both categories.

![Fig4 FI db blog](//images.ctfassets.net/4cgqlwde6qy0/46oAGN3yRlu8Z497cCkkcN/af053ee894d72ca680c02359a3e44a6c/Fig4_FI_db_blog.png)
*Figure 4: Blended FI transactions by sub-sector vs. the entire blended finance market*

__Capital flows to SMEs and climate finance__

FIs channel blended capital to borrowers who might otherwise lack access to financing. Many transactions target SMEs — widely [recognized](https://www.worldbank.org/en/topic/financialinclusion/overview?) as engines of economic growth yet chronically underserved in emerging markets — while a growing share focuses on climate-related investments including renewable energy, energy efficiency, and adaptation. Blending concessional with commercial capital helps FIs extend credit to sectors perceived as higher risk or unfamiliar, while leveraging their existing lending infrastructure and [local market knowledge](https://impakter.com/empowering-communities-the-impact-of-financial-institutions-on-economic-growth/#:~:text=They%20lay%20the%20groundwork%20for,the%20overall%20quality%20of%20life).

## Challenges and opportunities for scaling
 

__Build enabling environments and institutional capacity.__

[Regulatory constraints](https://media.odi.org/documents/MDB_GPG_Literature_Review_ihJln9M.pdf?), limited technical capacity, and insufficient data on segments like climate or gender-focused finance continue to restrict growth. [Technical assistance](https://www.convergence.finance/resource/blending-with-technical-assistance-2023/view) can help FIs develop new lending products, strengthen risk assessment, and improve reporting — building the foundation for sustainable expansion into underserved markets.

__Reduce perceived risk to attract private capital.__

DFIs and MDBs have been essential in anchoring these deals, but scaling the market requires greater commercial participation. Risk-sharing instruments, concessional capital, and longer-tenor financing can lower barriers for private investors, while a growing track record of successful transactions helps demonstrate the viability of lending in underserved markets.

FIs represent one of the most effective channels for deploying blended finance at scale, but the model is not without its limits. Growth has been concentrated among a relatively small group of DFIs and MDBs, and private sector participation remains constrained by perceived risk and limited track record in many markets. Expanding the reach of FI blended finance will depend on addressing these structural barriers — through targeted technical assistance, stronger enabling environments, and blending structures that make a credible case to commercial investors. Progress is being made, but scaling the intermediary model to meet the financing needs of underserved borrowers remains a work in progress.

__Become a [member](https://www.convergence.finance/membership) and read the full data brief: [Blending Arrangements with Financial Institutions](https://www.convergence.finance/resource/blending-arrangements-with-financial-institutions/view)__

Learn how blended finance has been used to support financial institutions

How Blended Finance can Support Financial Institutions

*Sydney, Australia, 26 March 2026* - At the Impact Investment Summit Asia Pacific, Convergence Blended Finance and the Australian Department of Foreign Affairs and Trade (DFAT) announce the inaugural cohort of the [Indo-Pacific NGO Blended Finance Accelerator](https://www.convergence.finance/accelerator/dfatngo).

The four NGOs will receive catalytic grant funding and acceleration support to design, launch, and scale blended finance solutions that mobilize private capital for climate action and gender equality across the Indo-Pacific.

The Indo-Pacific NGO Blended Finance Accelerator is a five-year initiative funded by DFAT and implemented by Convergence Blended Finance that aims to strengthen the role of NGOs in blended finance.

With over 80 applications received, the response underscores the growing ambition of NGOs to participate in blended finance transactions. The demand comes amid persistent financing gaps and donor funding volatility, particularly in underserved and climate-vulnerable markets. Over 70% of applicants were local NGOs, reflecting strong local ownership and a deep understanding of local contexts. Learn more about the selected semi-finalists [here](https://www.convergence.finance/news/74nwG34Ddims6mUBt8bIj8/view).

NGOs are increasingly exploring blended finance to address the growing gap between available donor funding and the scale of development needs. As many organizations reach a stage where their interventions demonstrate impact but require additional capital to scale, blended finance presents an opportunity to mobilize private investment alongside traditional funding sources. With their deep experience implementing programs and delivering localized impact, NGOs are well positioned to help translate blended finance into meaningful development outcomes.

Convergence Market Data indicates that only 17% of all blended finance transactions have an NGO participating in developing and implementing the transaction, highlighting a clear gap between interest and participation. This can be attributed to barriers NGOs often face when engaging in blended finance, such as limited financial structuring expertise, regulatory hurdles, and challenges securing organizational buy-in.

The Accelerator aims to close this gap by equipping NGOs with the tools and support they need to design, pilot, and scale innovative projects, as impact managers, technical assistance providers and, where suitable, fund managers.

This inaugural cohort represents a diverse group of NGOs working across the Indo-Pacific to develop blended finance solutions that address critical development challenges while creating new opportunities for private sector investment.

__Introducing the Awardees:__
__Good Return__ is awarded an expansion grant to support the scale-up of the Good Return Impact Investment Fund II, an evergreen USD 6.9 million blended finance facility supporting underserved micro, small, and medium enterprises (MSMEs) across the Asia-Pacific. The fund will partner with financial service providers to expand access to finance for women-led and climate-resilient businesses, using guarantees and lending facilities to catalyze commercial capital. The vehicle aims to support ~5,000 MSMEs over 10 years, with a minimum target of ~70% women-led or women-owned enterprises. The Accelerator will support the General Partner’s first-loss commitment to the fund to help catalyze additional investors, while also strengthening fund management, impact and gender monitoring, and the responsible scale-up of the facility.

__Oxfam Australi a and OBOR Management Co. Ltd.__, are awarded a scoping grant to design the Equi-Green Fund, a USD 20 million blended finance vehicle investing in climate-resilient and gender-responsive small and medium enterprises across Cambodia, Indonesia, and Timor-Leste. The fund will provide early-stage venture capital and technical assistance to enterprises in sectors such as renewable energy, circular economy, and climate-smart agriculture, addressing the region’s “missing middle” financing gap. The Accelerator will support validation of underlying assumptions, stress test the financial model and capital structure, fundraising, and securing anchor investor commitments.

__Save the Children Global Ventures__ is awarded a proof-of-concept grant to design the Asia Healthcare Fund, a USD 30 to 50 million blended finance vehicle investing in innovative healthcare ventures serving women and children across Southeast Asia and Pacific Island nations. The Fund will provide early- and growth-stage capital to scalable health solutions improving access to diagnostics, nutrition, and community-based care. The fund will aim to improve the health and nutrition of 5 million children and train over 100,000 women health workers, especially by leveraging Save the Children’s regional network and expertise. The Accelerator will help the fund complete key design activities, including setting up the legal structure, completing the operational and governance mechanism, identifying the investment pipeline, and securing investor commitments.

__Xpand Foundation__, Foundation Rai Matak and Pollination are awarded a proof-of-concept grant to design a USD 20 to 25 million blended finance platform to scale community-led agroforestry across Timor-Leste. The platform will provide upfront financing to local partners supporting smallholder farmers to plant and maintain trees on their land. This will create livelihood opportunities for 20,000 farmers, restoring degraded landscapes through the planting of 10 million trees. The platform will generate an estimated 15 - 25 million tonnes of verified CO₂ carbon credits over the life of the program while strengthening rural incomes and inclusion.

Following the successful completion of Cycle 1, the Indo Pacific NGO Accelerator will launch its second cycle on __19th May 2026__.

__Quotes attributable to the Minister for Pacific Island Affairs, Pat Conroy:__ 

“The Indo-Pacific NGO Blended Finance Accelerator will support innovative projects to drive long-term change in areas like gender equality and climate resilience.

“The Albanese Government is proud to support this evolution in our relationship with our international NGO partners.

“I look forward to seeing this initiative help to shape a peaceful, stable and prosperous region.”
 

__Quotes attributable to the Minister for International Development, Dr Anne Aly:__ 

“The Australian Government is proud to support projects that build economic resilience, deepen Australia’s partnerships, and deliver lasting benefits for communities in our region.

“We are living in a time of unprecedented global uncertainty, and we have a role to play in strengthening the peace and stability of our region.

“These investments will help deliver real benefits for communities across the Indo-Pacific, while supporting Australia’s interest in a region that is more stable, more resilient and more prosperous.”
 

__Quote attributable to CEO of Convergence, Joan Larrea:__ 

“Blended finance needs both scale and credibility. While financial actors are well along on designing large and standard structures, they can run into difficulty with local origination and designing for impact. NGOs and their expertise are critical to the market’s evolution, given their proximity to communities and their specialized knowledge.”

__Quote attributable to Senior Director of Convergence’s Blended Finance Accelerator, Leah Pedersen:__ 

“This Accelerator is designed to build the practical skills and track-record NGOs need to develop blended finance vehicles, from structuring transactions to fundraising to capital deployment. By supporting a diverse cohort of NGOs, we aim to build a pipeline of solutions for replication and scale-up benefiting communities across the region.”

__About Convergence and the Blended Finance Accelerator__ 

Convergence is the global network for blended finance. Convergence’s Blended Finance Accelerator supports blended finance practitioners with design grants, acceleration support, and market intelligence to scope, structure, and launch new blended finance solutions that unlock commercial investment to accelerate sustainable development in emerging markets.

On top of market acceleration through its Blended Finance Accelerator, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 160 public, private, and philanthropic investors as well as sponsors of transactions and funds.

__About the Australian Department of Foreign Affairs and Trade__ 

The Australian Department of Foreign Affairs and Trade promotes and protects Australia’s international interests to support our security and prosperity. We work with international partners and other countries to tackle global challenges, increase trade and investment opportunities, protect international rules, keep our region stable and help Australians overseas.

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

At the Impact Investment Summit Asia Pacific, Convergence Blended Finance and the Australian Department of Foreign Affairs and Trade (DFAT) announce the inaugural cohort of the Indo-Pacific NGO Blended Finance Accelerator.

NGOs Awarded Grants to Develop Blended Finance Solutions

Four NGOs Awarded Grants to Develop Blended Finance Solutions in the Indo-Pacific

Many donor governments are navigating increased fiscal constraints as demands on official development assistance continue to expand. We have also passed the midpoint of the Decade of Action for the Sustainable Development Goals, with progress uneven and many targets off track.

As more donor countries utilize blended finance as a means of compensating for reduced traditional aid budgets, there has been closer examination of what it can realistically deliver.

In this context, we at Convergence have seen several recurring critiques of blended finance emerge. Many point to genuine limitations and trade-offs that warrant careful consideration. Others reflect uncertainty about the role blended finance is expected to serve within a broader development finance architecture.

Below we outline six commonly cited critiques and consider what they reveal about how blended finance is being applied in practice today.

## 1. Limited mobilization of private capital at scale
One widely cited critique is that blended finance has not mobilized private capital at the scale anticipated under the “billions to trillions” agenda. This concern underscores the need for greater clarity around the function blended finance is expected to serve. Blended finance was not designed to replace public finance or to close global financing gaps on its own. Its primary role is catalytic, supporting market development, risk sharing, and early-stage investment where private capital would otherwise remain absent.

When assessed against this function, progress has been incremental but substantive. Recent data from the [State of Blended Finance 2025](https://www.convergence.finance/resource/state-of-blended-finance-2025/view) indicates that deal flow and transaction sizes have increased. 2024 volumes exceeded the average of the previous four years and median deal sizes have risen accordingly. Private sector participation has also [expanded](https://www.convergence.finance/resource/state-of-blended-finance-2025/view), particularly among commercial banks and intermediaries, reflecting a gradual shift toward greater commercial engagement. Scale, in this context, is cumulative and path dependent rather than immediate.

## 2. Concentration in commercially attractive countries and sectors
Another critique concerns the concentration of blended finance flows in middle-income countries and commercially viable sectors, compared to more limited reach in low-income countries or sectors where development needs are most acute.

Recent market trends highlight this pattern. In 2024, the share of least developed countries in the blended finance market [declined sharply](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view), while investment flows into lower- and upper-middle-income countries increased. Mobilization incentives may also favour larger economies and standardized transactions, reinforcing allocation patterns shaped by investor preferences rather than development priorities.

In operational terms, this has often translated into a concentration of blended finance activity in sectors such as energy, financial services, and infrastructure, where deal sizes are larger and revenue models are more established.

Blended finance functions most effectively where some degree of commercial viability exists, which constrains its applicability in highly fragile contexts. In such settings, grants, public investment, and direct public service provision remain essential. For development actors integrating blended finance into their strategies, this requires recognizing its limitations and using concessional resources selectively where they can most effectively mobilize private investment, while preserving grant-based financing for contexts where market-based approaches are unlikely to work.

## 3. Alignment of private incentives with public objectives
Another critique concerns the extent to which blended finance structures are shaped by private investors’ risk and return requirements, and whether public objectives are sometimes adjusted to accommodate those commercial constraints. This tension reflects the fact that blended finance sits at the intersection of development policy and commercial investment, requiring projects to be structured in ways that meet investor expectations on risk, return, and time horizon.

This dynamic has raised questions about whether blended finance contributes to the gradual marketization of activities traditionally treated as public goods, including areas such as health, education, and climate adaptation. Critics have also warned of the risk of “private capture,” where concessional support effectively advantages specific firms, technologies, or supply chains rather than advancing broader development priorities. In some contexts, these dynamics may be reinforced when donor governments explicitly link blended finance to trade, supply chain, or geopolitical objectives, raising additional questions about whose priorities ultimately shape project selection and development outcomes.

These tensions are most visible in sectors where commercial engagement is possible but incomplete, and where public risk absorption plays a decisive role in determining which activities are financed and on what terms. This critique highlights the importance of disciplined design and clear boundary-setting. De-risking is not an end in itself, but a transitional tool intended to enable private capital to support public priorities and to [catalyze](https://www.convergence.finance/resource/state-of-blended-finance-2024/view) the development of commercially sustainable markets over time. Blended finance requires clear boundaries, strong conditionalities, and an explicit public purpose to avoid mission drift.

## 4. Risk transfer and implications for public debt
There is also concern that blended finance may shift risk from private investors onto governments through guarantees, publicly backed lending, or other risk-sharing instruments. In countries already facing elevated debt burdens, this can deepen fiscal pressure and contribute to new forms of credit dependence.

In practice, however, most blended finance transactions fund private investment projects rather than sovereign borrowing. Public balance sheet exposure typically arises only where governments provide sovereign guarantees, assume contingent liabilities, or participate directly in project financing through public development banks or similar institutions. In most blended finance transactions, concessional capital is provided by multilateral development banks (MDBs), development finance institutions (DFIs), or donor-funded facilities, meaning risks do not fall directly on the host government balance sheet.

Only a subset of blended structures therefore creates fiscal exposure for the public sector. Examples include projects supported by sovereign guarantees, national development banks assuming subordinated or first-loss positions backed by public capital, or certain debt-for-nature swap arrangements that involve restructuring sovereign obligations. While these cases remain a minority of blended finance activity, they illustrate why careful structuring and transparency remain important.

These considerations reinforce the need for thoughtful design. Blended finance is not synonymous with lending, but debt instruments remain common, making careful structuring essential. Instruments such as equity, guarantees, and well-calibrated risk-sharing mechanisms can reduce public exposure relative to traditional borrowing, while poorly designed transactions can increase it. Robust debt sustainability analysis, coordination with fiscal authorities, and clarity regarding long-term financing trajectories are therefore essential.

## 5. Challenges related to impact measurement and accountability
Another frequently cited critique concerns the difficulty of verifying impact claims associated with blended finance. Inconsistent definitions, limited transparency, and methodological challenges have contributed to concerns regarding impact washing and weak accountability.

These challenges reflect the inherent complexity of blended finance transactions across diverse contexts. However, the field is evolving. Data availability, disclosure practices, and impact measurement frameworks have improved in recent years, including wider alignment among MDBs, DFIs, impact investors, and asset managers with shared standards such as the Operating Principles for Impact Management, which require public disclosure and independent verification of impact management systems. As the market continues to mature, the key question is whether transparency and accountability continue to strengthen in practice.

## 6. Financial complexity and replicability
Another critique concerns the financial complexity of some blended finance transactions and whether this complexity limits their scalability. Blended finance structures often involve layered capital stacks, concessional tranches, guarantees, and multiple institutional partners. While these arrangements are designed to balance risk and mobilize private investment, they can also make transactions more difficult to structure, negotiate, and replicate. Early blended finance deals were frequently bespoke, reflecting efforts to address specific market failures and generate learning across unfamiliar sectors and geographies. As a result, transaction costs have sometimes been high and deal preparation timelines lengthy.

These challenges do not necessarily undermine the value of blended finance, but they do highlight the importance of simplification and standardization as the market matures. Programmatic approaches, repeatable transaction structures, and clearer guidance on concessionality can help reduce complexity and make blended finance easier to deploy across a wider range of markets.

Financial sophistication can enable access to larger pools of private capital, but ensuring that structures remain transparent, replicable, and aligned with development objectives remains an important priority.

## Conclusion
Blended finance is neither a panacea nor an inherently flawed instrument. When poorly designed or overextended, it can generate risks and unintended consequences. When applied selectively, with clear objectives and strong public oversight, it can play a constructive role within a broader development finance ecosystem. In the current context of constrained public resources and rising global needs, the central question is not whether blended finance works in principle, but how and when it can be used most effectively. Ultimately, blended finance is best understood as a complement to, not a substitute for, predictable public investment, grant-based assistance in fragile contexts, and a coherent development strategy.

Read this blog where we outline six commonly cited critiques and consider what they reveal about how blended finance is being applied in practice today.

Six common critiques of blended finance & their implications

Six common critiques of blended finance and their implications

*This op-ed was originally published in [ImpactAlpha](https://impactalpha.com/blended-finance-cant-scale-without-insurance-at-the-table/). Written in collaboration with Global Asia Insurance Partnership CEO Min Hung Cheng.* 

Demand for capital to address climate and development challenges has never been greater, but the market’s ability to attract private investment remains [constrained](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view). One reason is that blended finance transactions continue to be structured without the actors who understand risk most deeply: the insurance sector.

Their limited engagement is undermining deal quality and slowing progress. Convergence and the Global Asia Insurance Partnership [examined](https://www.convergence.finance/resource/playbook-on-the-insurance-sectors-roles-in-blended-finance-at-the-climate/view) this dynamic in a recent playbook, finding that insurance sector involvement remains minimal even when risk issues sit at the center of transaction design.

This is a missed opportunity for the development community, but also for the insurance sector itself, which stands to gain from deeper partnerships that help close protection gaps and expand their reach in emerging markets.

Insurance sector actors can strengthen blended finance in three distinct ways: as risk advisors, as providers of insurance and reinsurance capacity, and as long-term investors.

Here, we focus on their advisory role because it has the greatest impact on whether deals are bankable and well structured. Yet this is precisely where engagement tends to come too late. The insurance sector is frequently consulted only after financial terms have been drafted and the risk architecture has hardened. By that point, their ability to shape feasibility assessments, improve risk allocation, and ensure insurability is sharply reduced.

This late engagement can raise pricing for insurance solutions, narrow coverage options, and increase uncertainty for commercial participants. It can also force donors to take on risks that could have been borne by the insurance sector. The result is a blended finance system that is more expensive, less effective, and less able to attract private capital at scale.

Recent experience illustrates what happens when insurance expertise is introduced only after a transaction is already advancing. In Nepal, the Upper Trishuli-1 hydropower project, one of the country’s largest inbound foreign direct investments and a significant boost to its future renewable energy production, was [waylaid](https://corporatesolutions.swissre.com/insights/knowledge/parametric-renewable-energy-nepal.html) by the 2015 Nepal earthquake.

Challenges in securing insurance to cover earthquake risks then emerged, stalling loan disbursement and [threatening](https://corporatesolutions.swissre.com/insights/knowledge/parametric-renewable-energy-nepal.html) the project’s viability. Aon was brought on as a risk advisor and Swiss Re Corporate Solutions as an insurer to design a parametric earthquake insurance solution linked to a site-specific seismic index that triggered payouts when ground shaking exceeded predetermined thresholds, enabling the project to move forward. However, the process would have been smoother and more efficient if those considerations had been built into the initial structure.

__Early engagement__ 
This pattern must change. Climate-related hazards are increasing uncertainty for infrastructure development, and gaps in hazard data and modeling remain a significant barrier to insurability in many emerging markets, as our playbook notes.

These constraints make early engagement from the insurance sector more important. The sector’s technical input is needed to identify data gaps, support hazard mapping, and clarify the feasibility of risk-transfer options before transaction structures harden.

When this work is left too late, it becomes far more difficult to incorporate insurability into the design. Early engagement, by contrast, allows the insurance sector to play a more proactive role in shaping solutions that expand protection, build resilience, and open commercially viable markets aligned with its long-term growth strategies.

Donors, governments, development finance institutions (DFIs), and multilateral development banks (MDBs) therefore need to integrate the insurance sector into the earliest phases of transaction development. This means embedding insurance expertise in ideation, feasibility assessment, and early modeling, where decisions about risk allocation and design parameters are made. It also requires stronger coordination between ministries, supervisors, DFIs and MDBs, and insurance partners to ensure that insurability constraints are identified and addressed before a deal advances toward financial close.

Catalytic capital providers can help create the conditions for earlier engagement. Design-stage grants and technical assistance facilities should include dedicated allocations for early risk assessments, climate modeling, and data development, enabling the insurance sector to apply its technical expertise effectively during the structuring process. These allocations are small relative to the cost of redesigns or the additional concessional capital required when insurance considerations surface later. Greater efficiency is also likely when the insurance sector itself develops clearer entry points into transaction development, including predefined triggers and dedicated advisory capacity that can be mobilized when projects reach the appropriate stage.

Blended finance will not reach the scale required to meet climate and development goals without a more deliberate and systematic integration of the insurance sector. These actors bring more than coverage. They bring a long-term perspective on risk, grounded in data and modeling, that is essential for structuring transactions that are credible and investable. The insurance sector’s involvement is not a secondary input. It is foundational to creating effective mechanisms for risk allocation and to reducing the need for costly redesigns or excessive concessionality later in the transaction lifecycle.

Insurance sector actors can strengthen blended finance in three distinct ways: as risk advisors, as providers of insurance and reinsurance capacity, and as long-term investors.

Blended finance can’t scale without insurance at the table

When designing a new fund, every fund manager eventually faces the same question: how should the financial vehicle be structured and governed to deliver on its investment thesis? Choosing the tenor or deciding between an evergreen and closed-end structure is one of the most important steps in the process, as the fund’s structure ultimately shapes how capital flows, which investors participate, and when they exit.

A closed-end fund runs for a fixed term (typically 10 years, with limited options for extension). Investors commit capital upfront, which is called/drawn down, then deployed during the investment phase, and returned to them at the end of the fund’s life based on cash flows generated through exits, repayments, interest, or other distributions. This structure is one of the most common in blended finance.

[Lendable’s MSME Fintech Credit Fund](https://lendable.io/news/lendable-closes-on-110m-emerging-market-fintech-fund-with-commercial-and-public-investors/) demonstrates how closed-end models function in practice. The fund provides fixed-term senior credit to fintech lenders who have clear maturities and repayment schedules, making the closed-end model a natural fit. This structure provides investors with a defined timeline for capital deployment, portfolio seasoning, and the return of proceeds.

Evergreen funds, in contrast, have no set end date. In the mainstream market, they are often able to make more frequent distributions, thereby offering greater liquidity. This can be harder to achieve in a typical impact fund, where the underlying investments are typically long-term and illiquid.

Finance in Motion’s [eco.business Fund](https://www.ecobusiness.fund/en/impact), established in 2014, illustrates how an evergreen model can function in blended finance. The fund provides financing and technical assistance to financial institutions and businesses committed to environmental practices across Latin America and Sub-Saharan Africa.

Operating in sectors that require patient capital, the fund goes beyond financing. It works closely with investees to align on the use of proceeds and provides advisory support and capacity building to drive measurable impact. At the same time, investors expect rigorous impact measurement and reporting. Building and sustaining this dual infrastructure for both investees and investors requires long-term continuity and makes economic sense when costs can be amortized over time. The evergreen structure therefore, aligns directly with the fund’s impact model.

Within a blended finance architecture, stability is essential: a long-term or perpetual first-loss tranche can anchor the vehicle, while senior tranches may carry shorter maturities aligned with investor preferences and asset repayment profiles.

Convergence Market Data finds that only 82 out of 1,478 blended transactions in our database are evergreen. While evergreen structures are less common in blended finance, we have recently seen growing momentum for evergreen funds as stakeholders increasingly recognize that longer horizons can be better suited to achieve certain development outcomes than the traditional 10-year cycle.

In this context, Convergence recently hosted a [webinar](https://www.convergence.finance/calendar/5yLxUHumih87WPljyqDe2E/view) examining how a vehicle’s structure affects fundraising, flexibility, and long-term impact. The session highlighted not only the conceptual differences between evergreen and closed-end models, but also how these choices play out in real fundraising conversations with investors. Here we share some key insights from the discussion.

__Balancing Flexibility with Fundraising Simplicity__ 
Participants agreed that simplicity is essential, especially when engaging institutional investors. These investors are accustomed to clear timelines, predictable exits, and straightforward reporting, features typical of closed-end funds.

By contrast, evergreen structures offer greater flexibility, allowing capital to remain in the vehicle and be redeployed. This feature can attract strategic investors who value sustained impact and the ability to remain invested for longer periods without premature exits. However, evergreen models also introduce more limitations related to liquidity, valuation, and redemption mechanisms, which can be a barrier for many institutional investors.

To help bridge this gap, new, innovative solutions are emerging that combine long-term flexibility with clearer liquidity pathways. The recently launched [Octobre Liquidity Guarantee Facility](https://innpact.com/octobre-liquidity-guarantee-facility-olgf-launches/) illustrates how thoughtful design can introduce liquidity options even in traditionally illiquid impact funds. The facility allows investors to sell their stakes and access liquidity without forcing fund managers to unwind assets before their natural timeline. Complementing such fund-level solutions, ecosystem-level initiatives are also beginning to address structural liquidity constraints. The [Liquidity Platform for Impact (LPI)](https://edfimc.eu/what-we-do/liquidity-platform-for-impact-programme-lpi/), an EFSD+ Guarantee Programme run by EDFI Management Company, aims to support the development of a secondary market for impact investments in emerging markets by coordinating public and private actors and facilitating exit opportunities for investors holding positions in impact funds. While LPI is not a liquidity solution in itself, its focus on secondary market development underscores the growing recognition that attracting institutional capital into long-term emerging market investments will require both targeted fund-level innovations and broader market-building efforts.

__Recycling Capital and Maximizing Impact__ 
Evergreen funds can amplify impact by allowing capital to be recycled and redeployed multiple times. Reinvested proceeds extend the reach of the same funding and compound results over time, creating a multiplier effect for long-term impact. For fund managers, this approach provides the flexibility to scale with successful investees and remain engaged beyond a single investment cycle.

However, many participants noted that recycling capital depends on a strong, predictable investment pipeline. If new opportunities are slow to materialize, capital may sit idle, reducing efficiency. In practice, evergreen funds can deepen impact within a single market where a steady pipeline exists, while closed-end funds allow capital to be refreshed and redirected toward new frontiers.

__Matching Fund Horizons to Sector Realities__ 
The discussion then shifted to whether certain sectors naturally lend themselves to one structure over the other. Participants agreed that some sectors with long project life cycles or uncertain revenue models require patient, long-term capital. Evergreen vehicles provide the flexibility to hold investments for longer periods, allowing businesses to mature and deliver meaningful impact over time. However, closed-end funds can also serve these sectors when designed with extended tenors, such as 20-year maturities.

[The Forestry and Climate Change Fund (FCCF)](https://www.convergence.finance/resource/forestry-and-climate-change-fund-fccf-case-study/view) offers a practical example. Forestry investments often require longer horizons than traditional closed-end structures allow. FCCF was structured with a 15-year term, but many benefits only began to materialize toward the end of the fund’s life, highlighting the trade-off between time and impact. One of the key insights from Convergence’s case study on the Fund was that a longer-term vehicle with a 20-year tenor would have been a better fit for forestry cycles.

__Choosing the right structure__ 
The session reaffirmed that no single structure is universally better. Evergreen funds offer flexibility and compounding, while closed-end funds offer simplicity, liquidity, and fundraising efficiency. The choice depends on the investment strategy, the investors involved, and the desired sector. As one speaker summarized, “it is not evergreen versus closed-end, it is about designing what works for your mission and your market.”

*This webinar was one of Convergence’s member trainings, hosted quarterly for our global network. Explore upcoming sessions and topics [here](https://www.convergence.finance/calendar).*

Key Insights from Convergence’s Latest Webinar on Structuring Blended Finance Funds 

Evergreen vs. Closed-End Funds

Evergreen vs. Closed-End Funds: Key Insights from Convergence’s Latest Webinar on Structuring Blended Finance Funds

Rabobank is a large Dutch bank with a presence in 35+ countries, including 25+ emerging countries via Rabo Partnerships and Rabobank Foundation. In the Netherlands, Rabobank serves both retail and corporate clients, while globally they focus on the food and agricultural sector.

Within Rabobank, Rabo Partnerships is a dedicated entity that partners with financial institutions around the world to drive impact in food and financial systems, especially in emerging markets. In this way, it aims to strengthen these institutions’ ability to serve smallholder farmers and agricultural small- and medium-sized enterprises (agri‑SMEs).

We spoke to Pieter Bos, Sr. Advisor Blended Finance at Rabo Partnerships about how they engage in blended finance, their AGRI3 Fund, their focus areas, and more.

__Tell us about how you engage with partners to develop scalable food and agriculture finance solutions in emerging markets.__

We do this in a couple of ways. One is by taking minority equity stakes in these financial institutions and another is by delivering technical assistance. For example, part of this work involves setting up digital solutions, like developing digital credit‑scoring tools, using sensor and satellite data for farm and climate risk mapping, and embedding data‑driven approaches into the bank’s operations. The goal is really to help scale sustainable finance, reduce risk, and increase access to financial services where they are needed most.

We also have a dedicated blended finance team within Rabo Partnerships that focuses on bringing together public and private funding to mobilize capital into emerging markets. Rather than focusing on fund management, the team concentrates on origination and structuring: translating sustainability and transition challenges into concrete lending propositions that work for farmers, clients, and commercial banks alike. 

The blended finance team structures loans for Rabobank’s large base of corporate and rural clients in emerging markets, both on an individual basis and through portfolio lending. In addition, the team supports local financial institutions in engaging with impact capital providers including impact funds and development banks, and developing lending propositions that expand access to finance for the agricultural sector.

__Rabobank co-created the AGRI3 Fund, one of the most recognized blended finance vehicles. What motivated the bank to help launch this fund, and how has it evolved to meet market needs?__

AGRI3 was launched in 2020 by Rabobank and United Nations Environment Programme (UNEP), together with IDH and with support from FMO - Entrepreneurial Development Bank, and the Dutch government. It was created in response to the urgent need to support the transition to sustainable agricultural practices and to combat deforestation. Many farmers and agribusinesses are willing to invest in sustainable land use, but the financial system is often unable to support the associated risks and longer timelines.

Transitioning to deforestation-free and climate-resilient production typically requires longer loan tenors, grace periods and financing for activities that might not generate immediate cash flows. These features sit uncomfortably within traditional bank risk frameworks.

AGRI3 was designed as a guarantee-based blended finance fund. By providing partial credit guarantees and technical assistance, the fund enables commercial banks to -amongst others - extend loan tenors, increase ticket sizes and support transition investments that would otherwise remain unfunded.

A strong example of a loan proposition built with Agri3 Fund is [Renova Pasto](https://www.rabobank.com/about-us/rabo-partnerships/news/011331477/renova-pasto) in Brazil: a standardized loan product that combines long term financing, partial guarantees and technical assistance to support cattle farmers restore degraded pastureland and accelerate their compliance with the Brazilian Forest Code. Embedding this structure into regular credit processes has significantly improved efficiency and replicability.

Since its launch, AGRI3 has evolved from supporting individual transactions to more scalable, standardized approaches, including partnerships with other financial institutions.

__Many of Rabo Partnerships’ blended finance transactions make use of guarantees. Could you explain how guarantees help unlock private capital, and why Rabo Partnerships has chosen to prioritize this instrument over other blended finance tools?__

In sustainable agriculture and land-use transitions, risk is often structural rather than cyclical. Farmers face climate risks, transition risks and temporary income dips as they adopt new practices. At the same time, lenders face uncertainty around unfamiliar business models and the longer investment horizons these transitions require.

Guarantees directly address these challenges by absorbing part of the downside risk. For banks, that means they can lend with longer tenors, to clients, activities and/or assets that normally fall outside the standard risk appetite, while maintaining commercial pricing and credit discipline.

Rabobank sees clear value in these guarantees because they fit naturally into bank lending frameworks. They can be deployed efficiently, without requiring lenders to fundamentally change how they operate.

At the same time, guarantees remain scarce relative to demand. Expanding their availability for globally active lenders like Rabobank is, in our opinion, one of the most impactful roles development financial institutions (DFIs) and development banks could play in unlocking private capital for sustainable agriculture.

__What are the key impact areas Rabobank has focused on through its blended finance initiatives?__

Our blended finance team’s initial efforts have been mainly focused on deploying the AGRI3 Fund alongside Rabobank’s own balance sheet, which resulted in a sizeable and growing portfolio. 

At the same time, when it comes to working with local financial institutions and our “partner banks”, we are still at an earlier stage, but we see a clear opportunity to scale. Local banks and non-bank financial institutions are essential for farmer finance. They are close to farmers and understand local realities, but many remain cautious about financing food and agriculture businesses because of perceived risks.

Moving the needle requires stronger collaboration with value‑chain players to improve risk profiles, combined with blended finance tools that allow banks to reach underserved segments more confidently.

Overall, Rabo Partnerships’ blended finance work aligns with three closely connected Rabobank impact priorities:
- Nature: forest protection, land restoration, and deforestation-free supply chains
- Climate: mitigation and adaptation through more resilient farming systems
- People: improved rural livelihoods, equality, income stability, and access to financial services for rural communities.
 
Food security is also becoming an increasingly important focus; our work supports initiatives that stabilize and grow sustainable food production at scale. This includes solutions that help farmers access modern equipment and high‑quality inputs essential for productivity and climate resilience. Blended finance solutions play a critical role by sharing transition risks and supporting the evolution of our credit and risk‑assessment frameworks. This allows commercial capital to finance investments that would otherwise fall outside standard risk appetite. Experience shows that these objectives cannot be addressed in isolation. For instance, even environmental initiatives only scale when they are economically viable for farmers. 
 

__As a commercial bank, what have been the key challenges and opportunities you’ve experienced when working with DFIs or other public sector stakeholders to structure blended finance transactions?__

One recurring challenge we face is bringing together two quite different mindsets – those of commercial bankers and impact capital providers. It can take time to find the right partner with the appropriate de-risking tools, aligned impact ambitions, and the ability to engage at the right moment. This is partly because impact capital is fragmented. 

At the same time, there is a strong opportunity to combine complementary strengths. Rabo Partnerships brings origination capacity, sector expertise, and execution capability, while catalytic capital providers bring risk-bearing, possibly concessional capital and environmental, social, and governance (ESG) expertise. When these strengths come together effectively, we can co-develop new lending propositions that work for large corporates and value chain players, while ensuring they are scalable and replicable beyond individual transactions. 

__Drawing on your experience as a commercial lender and globally active food and agriculture bank, where do you see the greatest opportunities for blended finance to help unlock more bankable transactions in the sustainable agriculture sector?__

The biggest opportunity lies in moving beyond pilots and ensuring capital reaches farmers at scale.

Some of the most promising areas include portfolio-level guarantees for partner banks serving smallholders, value chain finance linked to corporates, like input providers, sustainable equipment manufacturers and off takers, and local currency risk-sharing structures. We also see strong potential in embedding climate and nature transition products directly into core bank offerings, such as with the Renova Pasto model, rather than treating it as a stand-alone initiative.

Rabo Partnerships can originate strong, real economy pipelines across regions and commodities. What is often missing is sufficient catalytic capital to share transition risks and enable these solutions to scale. This creates a clear opportunity for development banks, DFIs, and impact funds to partner with Rabobank, Rabo Partnerships, and our partner banks in building the next generation of sustainable agriculture finance.

Read our Member Spotlight with Rabobank to learn about how they engage in blended finance, their AGRI3 Fund, their focus areas, and more.

Rabobank Member Spotlight with Pieter Bos

In 2015, Blue Alliance was created to explore innovative, self-sustaining funding models for marine protected areas (MPAs). Since then, Blue Alliance has developed a unique marine conservation model and has worked closely with governments to create and nurture self-sustaining MPAs.
![Blue Alliance Blended Finance Vehicle](//images.ctfassets.net/4cgqlwde6qy0/1pb80pwnYvJtZsadRpYNqT/f4c268493a90f1bc1a22edda1ead5178/IMG_0751.JPG)

[Blue Alliance Blended Finance Vehicle](https://www.ccfacility.org/portfolio/blue-alliance-blended-finance-vehicle), accelerated through the [Catalytic Climate Finance Facility (CC Facility)](https://www.ccfacility.org/), is supporting 3.5 million hectares of MPAs across Sub-Saharan Africa and Southeast Asia. The structure has been working to strengthen MPA operations and develop reef-positive businesses within the blue economy that alleviate poverty and generate long-term income for MPAs. These sectors include community-based aquaculture, ecotourism, sustainable fisheries, and blue carbon projects.

In this interview, Nicolas Pascal, Executive Director & Co-Founder of Blue Alliance, shares insights on the initiative’s challenges, impact, and future.

__What challenges have you faced?__

The primary challenge is that many large MPAs in the Global South remain “paper parks”, legally designated but inactive due to chronic underfunding, limited enforcement capacity, and fragmented short-term projects. This allows destructive fishing, reef degradation, and declining fish stocks to continue. Furthermore, working across remote seascapes requires deep community engagement, development of alternative livelihoods, and establishment of reliable data systems for monitoring biodiversity and climate impacts. Another challenge we have encountered is securing patient, early-stage capital for both MPAs and local businesses, as traditional funding cycles are often too short to support long-term ecosystem recovery.
![Blue Alliance Blended Finance Vehicle](//images.ctfassets.net/4cgqlwde6qy0/2ihg3Z01CR9mZ7xGvm4zd7/3c148f2e5c808dce9a7e1ebf4ac3e50b/PHOTO-2026-01-28-11-13-42_2.jpg)

__What is the solution?__

Blue Alliance is developing a long‑term, scalable model to regenerate coral reefs while improving the livelihoods of coastal communities. The organization co‑manages large MPAs alongside governments and local communities, implementing more than 70 activities across enforcement, biodiversity monitoring, community development, and climate resilience. In parallel, it manages and owns a portfolio of “reef‑positive businesses” in community‑based aquaculture, sustainable fisheries, and eco‑tourism. These enterprises generate local jobs and income while providing a pathway for MPAs to secure their own long‑term financing. The result is a model in which conservation functions as an economic engine rather than a recurring cost burden.
![Blue Alliance Blended Finance Vehicle](//images.ctfassets.net/4cgqlwde6qy0/4nAQfFCbowOCRKiHtd4NrL/a4fdccb57763042173c85bdce835e21c/DSC09745.jpg)

To address the chronic financing gap facing MPAs, Blue Alliance has established the Blue Alliance Blended Finance Vehicle, which combines philanthropic funding, grants, and impact investment. Philanthropic partners provide concessional capital that covers essential conservation activities and contributes to the design and structuring of the overall facility. This catalytic funding reduces investment risk and enables private investors to enter at scale.

The mechanism links grant financing for MPA management with impact loans for reef‑positive enterprises that are required to meet environmental and social performance criteria. As these businesses mature, they return revenues through dividends or revenue‑sharing directly to the MPAs, reducing long‑term dependence on donor funding and public budgets.
![Blue Alliance Blended Finance Vehicle](//images.ctfassets.net/4cgqlwde6qy0/4EqpD5TnlWERAHkkNRL1up/9d8ff205e7a54306db3912e4fe538a00/IMG_0732_1_.JPG)

By combining public and philanthropic capital with private investment, the blended finance structure strengthens MPA operations and accelerates the growth of sustainable coastal economies. It provides upfront and early‑stage capital for enterprises that address key drivers of reef degradation, alleviate poverty, and build resilient income streams for coastal communities. The CC Facility is supporting Blue Alliance in refining this financial structure, strengthening investor engagement, and enabling the model to scale across regions.

Overall, the facility is designed to mobilize substantial impact investment, support the regeneration of more than a million hectares of coral reef ecosystems, and improve livelihoods and food security for coastal communities across multiple countries. The model ensures that conservation is not a cost but a local economic engine, allowing people and nature to thrive together.
![Blue Alliance Blended Finance Vehicle](//images.ctfassets.net/4cgqlwde6qy0/5kcuCbmI1PrPATbOzb0iOj/caabe6a0e1796746882723c7d2d679af/IMG_1222.JPG)

__How did funding from the CC Facility support the development of the solution?__

The CC Facility funding accelerated the structuring and scaling of Blue Alliance’s blended finance vehicle. It enabled us to strengthen our financial model, refine our impact key performance indicators, engage new investors, and build the legal and operational foundations required to expand our portfolio of reef-positive businesses and the next cohort of MPAs. The support also helped us prepare country expansion strategies, investor materials, and gender integration plans. In short, the CC Facility has allowed Blue Alliance to move from a successful proof-of-concept to a robust, investable structure ready for scale across multiple countries.

__What is the impact so far?__

Blue Alliance currently co-manages 3.5 million hectares of coral reef ecosystems across Indonesia, the Philippines, and Tanzania, protecting more than 70 threatened species and supporting the livelihoods of over 30,000 coastal community members. Our teams have implemented over 15,000 hours of patrols, strengthened marine law enforcement, and collected extensive scientific data on fish biomass, coral cover, fisheries productivity, and mangrove carbon. Reef-positive businesses have generated over USD 500,000 in early revenues and created 127 jobs, demonstrating the viability of a conservation-led economy. Communities already report reduced illegal fishing and improved catches near MPAs, clear signs of early ecological recovery.
![Blue Alliance Blended Finance Vehicle](//images.ctfassets.net/4cgqlwde6qy0/4PRg2qqzTx2vGASksrm9DO/a6690410b0bdd9d9662d645cf19f510c/DSC09560.jpg)

__What’s next?__

With support from partners like the CC Facility, Blue Alliance aims to scale its model to 9 million hectares by 2030, demonstrating the viability of long-term, financially self-sustaining MPA networks. This includes launching the next cohort of reef-positive businesses, expanding to new countries, and deepening climate impact through mangrove conservation. We will continue strengthening our monitoring systems, building local capacity, and ensuring that dividends from reef-positive businesses progressively finance MPA operations. The ambition is to create a global blueprint for large-scale coral reef regeneration and community-led ocean protection.
![Blue Alliance Blended Finance Vehicle](//images.ctfassets.net/4cgqlwde6qy0/32FcVUzQhpxK9iIflcREVA/db170a36c0e0712ff940d5c39947bcb5/IMG_20251025_140716_270.jpg)

Read our grantee impact story on Blue Alliance Blended Finance Vehicle.

Blue Alliance Blended Finance Vehicle Impact Story

Institutional investors are emerging as a critical source of capital, with pension funds and insurers committing larger tickets to blended transactions targeting renewable energy, energy efficiency, and agriculture. In 2024, [commitments](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view) from these investors rose from just $2 million in 2022 to $1.6 billion, highlighting the growing role fund and asset managers are playing in blended finance.

Convergence’s [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm), an initiative funded by [Global Affairs Canada](https://www.canada.ca/en/global-affairs/news/2025/06/secretary-of-state-sarai-concludes-participation-in-the-fourth-international-conference-on-financing-for-development.html), aims to strengthen the capacity of fund and asset managers to participate in blended finance by equipping them with tailored training, grant funding, and acceleration assistance required to structure and launch blended finance solutions.

This first Call for Proposals demonstrated strong demand from fund and asset managers for the holistic support the Accelerator and Convergence offer. The submissions reflect a broad diversity of strategies and levels of maturity, with proposals spanning early-stage concepts through to more advanced vehicles approaching market readiness. The majority of applications propose fund structures, underscoring growing interest in scalable investment vehicles.

Following a competitive review process, the proposals that stood out demonstrated strong additionality in mobilizing private and institutional capital into markets and sectors where capital is not flowing at scale on commercial terms alone. These fund and asset managers are using catalytic capital in the form of first-loss, guarantees, and technical assistance to de-risk and mobilize capital from local pensions, insurers, and global corporations.

Across different regions and asset classes, these proposals use blended finance to address specific barriers faced by investors, such as currency risk, perceived credit risk, early-stage business models, limited exit pathways, or regulatory constraints through blended structures. Small and medium-sized enterprise (SME) investing emerged as a major theme across proposals, reflecting the significant financing gap facing SMEs in developing countries.

## Semi-Finalists for the First Call for Proposals 
A sub-set of the vehicles below, listed in alphabetical order, will move to the Investment Committee stage. 

__Àrgentil Investment Fund (ÀSIF) L.P. by [Àrgentil Capital Management Limited](https://www.argentilcm.com/)__ 
A growth-oriented private equity fund investing in SMEs in Nigeria, Ghana, and other West African countries through a mix of hard-currency and local-currency equity strategies. 
 
__Ashmore Impact Loan Strategy by [Ashmore Group plc](https://www.ashmoregroup.com/en-gb)__ 
A structured private credit strategy investing mainly alongside multilateral development bank-originated loans, complemented by selective direct private credit exposures in emerging markets. 
__DFP Africa Mobility Innovation Fund (AMIF) by [Double Feather Partners, Inc.](https://doublefeather.com/)__ 
A blended finance venture fund investing in early-stage mobility and logistics solutions that support low-carbon transport and inclusive economic activity in Africa. 
 
__EMIF Group Fund by [EMIF Group](https://emifgroup.com/)__ 
A blended finance equity fund that bridges the critical gap between feasibility and bankability in urban infrastructure projects across emerging markets. 
 
__EG Economic Empowerment Fund L.P. (EG-EEF) by [EG Capital G.P.](https://egcapital.online/)__ 
A blended finance mezzanine debt fund supporting climate adaptation-focused SMEs, with a strong emphasis on gender inclusion, job creation, and intra-Africa regional trade across least developed countries (LDCs). 
 
__Farmties Fund 1 by [Farmties Capital Limited](https://www.farmties.com/)__ 
A revolving working capital investment vehicle financing export-oriented agricultural SMEs across Sub-Saharan Africa. 
 
__Urapi2 by [Ecotierra Inc.](https://www.ecotierra.co/) Project Management Company__ 
A vertically integrated agroforestry investment platform financing nature-based solutions projects linked to carbon credits and sustainable commodity value chains in Latin America. 
 
__Oryx Impact by [Oryx Impact S.L.](https://oryximpact.com/)__ 
A fund-of-funds strategy targeting African impact funds, with a phased approach to introducing blended finance features to attract local institutional investors. 
 
__SecondMuse Capital Discovery Fund by [SecondMuse Capital](https://www.secondmusecapital.com/)__ 
A place-based blended finance facility using debt, grants, and outcome-based instruments to unlock green investment that is nature positive, focused on restoring nature, and designed to deliver mutual value and a resilient wellbeing economy in Southeast and South Asian markets. 
 
__Sini Greenfield Fund, managed by [Sini Capital Management](https://sinicapitalmanagement.com/)__ 
A Shariah-compliant fund investing in greenfield and early-stage agricultural enterprises across East Africa. The fund focuses on export markets and climate-aligned production, combining equity investment with hands-on venture building to develop scalable anchor firms. 
 
__Transform & Adaptation Fund (TAF) by [AfricInvest](https://www.africinvest.com/) and [Thirdway Partners](https://www.thirdway.earth/)__ 
A climate adaptation-focused private debt fund investing in resilient agriculture and food value chain, sustainable mobility, and built environment sectors across African and Latin American markets. 

These blended finance vehicles span a range of asset classes, geographies, and sectors, including private debt and equity, infrastructure, agriculture, energy, and climate adaptation. Collectively, they reflect the growing sophistication of fund managers designing structures that aim to meet the risk-return expectations of institutional investors. We would also like to acknowledge the Canada-based fund and asset managers who participated in the first Call for Proposals. A4FM remains committed to strengthening the ecosystem and building the capacity of Canadian institutional players to engage meaningfully in blended finance initiatives globally.

“The depth and nature of the A4FM Accelerator’s initial round of applicants clearly demonstrates the appetite for blended finance as a key structuring tool to facilitate institutional investing in the emerging and developing economies at scale. We congratulate these top-ranked applicants for designing innovative, investable structures that deploy catalytic capital to overcome real market barriers and open pathways for commercial investing in traditionally undercapitalized markets.” — *Leah Pedersen, Senior Director, Blended Finance Accelerator, Convergence*

A subset of these proposals will undergo further detailed due diligence, following which vehicles may be recommended to the Investment Committee for award consideration. Stay tuned for the final list of awardees and for A4FM’s next call for proposals, expected to launch in April 2026.

(FRANÇAIS/FRENCH)

__Annonce des demi-finalistes : premier appel de propositions pour l’Accélérateur de financement mixte pour les gestionnaires de fonds et d’actifs__

Les investisseurs institutionnels sont en train de devenir une source essentielle de capital, les fonds de pension et les assureurs s’engageant davantage dans des transactions mixtes ciblant les énergies renouvelables, l’efficacité énergétique et l’agriculture. En 2024, les [engagements](https://www.convergence.finance/resource/state-of-climate-blended-finance-2025/view) de ces investisseurs sont passés de seulement 2 M$ en 2022 à 1,6 G$, soulignant le rôle croissant des gestionnaires de fonds et d’actifs dans le financement mixte.

L’[Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM)](https://www.convergence.finance/accelerator/a4fm) de Convergence, une initiative financée par [Affaires mondiales Canada](https://www.canada.ca/en/global-affairs/news/2025/06/secretary-of-state-sarai-concludes-participation-in-the-fourth-international-conference-on-financing-for-development.html), vise à renforcer la capacité des gestionnaires de fonds et d’actifs à participer au financement mixte en les dotant d’une formation sur mesure, de subventions et d’une aide à l’accélération nécessaires pour structurer et lancer des solutions de financement mixte.

Ce premier appel de propositions a démontré une forte demande de la part des gestionnaires de fonds et d’actifs pour le soutien holistique de l’Accélérateur et de l’offre Convergence. Les soumissions reflètent une grande diversité de stratégies et de niveaux de maturité, avec des propositions couvrant des concepts à un stade précoce jusqu’à des véhicules plus avancés, proches de leur mise en marché. La majorité des propositions portent sur des structures de fonds, soulignant l’intérêt croissant pour des véhicules d’investissement évolutifs.

À la suite d’un processus d’évaluation concurrentiel, les propositions retenues ont démontré une forte additionalité, en mobilisant des capitaux privés et institutionnels vers des marchés et secteurs insuffisamment desservis par des financements aux conditions strictement commerciales. Ces gestionnaires de fonds et d’actifs utilisent du capital catalytique, sous forme de tranches de première perte, de garanties et d’assistance technique, afin de réduire le risque et de mobiliser des capitaux provenant de régimes de retraite locaux, d’assureurs et d’entreprises multinationales.

Dans différentes régions et catégories d’actifs, ces propositions ont recours au financement mixte afin de lever des obstacles précis auxquels font face les investisseurs, notamment le risque de change, le risque de crédit perçu, des modèles d’affaires en phase initiale, des options de sortie limitées ou des contraintes réglementaires, au moyen de structures mixtes. L’investissement dans les petites et moyennes entreprises (PME) est apparu comme un thème majeur dans toutes les propositions, reflétant l’important déficit de financement auquel sont confrontées les PME dans les pays en développement.

## Demi-finalistes pour le premier appel de propositions 
Un sous-ensemble des véhicules ci-dessous, énumérés par ordre alphabétique, passera à l’étape du comité d’investissement. 

__Àrgentil Investment Fund (ÀSIF) L.P. par [Àrgentil Capital Management Limited](https://www.argentilcm.com/)__ 
Un fonds de capital-investissement axé sur la croissance qui investit dans des PME au Nigéria, au Ghana et dans d’autres pays d’Afrique de l’Ouest grâce à un mélange de stratégies d’actions en devises fortes et en devises locales. 
 
__Ashmore Impact Loan Strategy par [Ashmore Group plc](https://www.ashmoregroup.com/en-gb)__ 
Une stratégie structurée de crédit privé investissant principalement aux côtés de prêts multilatéraux provenant de banques de développement, complétée par des expositions directes sélectives au crédit privé sur les marchés émergents. 
 
__DFP Africa Mobility Innovation Fund (AMIF) par [Double Feather Partners, Inc.](https://doublefeather.com/)__ 
Un fonds de capital-risque de financement mixte investissant dans des solutions de mobilité et de logistique à un stade précoce qui soutiennent le transport à faible émission de carbone et l’activité économique inclusive en Afrique. 
 
__EMIF Group Fund par [EMIF Group](https://emifgroup.com/)__ 
Un fonds de financement mixte qui comble le fossé critique entre la faisabilité et le caractère finançable des projets d’infrastructure urbaine sur les marchés émergents. 
 
__EG Economic Empowerment Fund L.P. (EG-EEF) par [EG Capital G.P.](https://egcapital.online/)__ 
Un fonds de dette mezzanine en financement mixte destiné à soutenir des PME axées sur l’adaptation aux changements climatiques, mettant fortement l’accent sur l’inclusion de genre, la création d’emplois et le commerce régional intra-africain dans les pays les moins avancés (PMA). 
 
__Farmties Fund 1 par [Farmties Capital Limited](https://www.farmties.com/)__ 
Un véhicule d’investissement en fonds de roulement renouvelable finançant des PME agricoles orientées vers l’exportation en Afrique subsaharienne. 
 
__Urapi2 par [Ecotierra Inc.](https://www.ecotierra.co/) Project Management Company__ 
Une plateforme d’investissement en agroforesterie verticalement intégrée finançant des projets de solutions basées sur la nature liés aux crédits carbone et aux chaînes de valeur des produits de base durables en Amérique latine. 
 
__Oryx Impact par [Oryx Impact S.L.](https://oryximpact.com/)__ 
Une stratégie de fonds de fonds ciblant des fonds d’impact africains, avec une approche progressive visant à intégrer des mécanismes de financement mixte afin d’attirer des investisseurs institutionnels locaux. 
 
__SecondMuse Capital Discovery Fund par [SecondMuse Capital](https://www.secondmusecapital.com/)__ 
Un mécanisme de financement mixte local utilisant la dette, des subventions et des instruments axés sur les résultats pour débloquer des investissements verts positifs pour la nature, axés sur la restauration de la nature et conçus pour offrir une valeur mutuelle et une économie du bien-être résiliente sur les marchés du Sud-Est et de l’Asie du Sud. 
 
__Sini Greenfield Fund, géré par [Sini Capital Management](https://sinicapitalmanagement.com/)__ 
Un fonds conforme à la charia qui investit dans des entreprises agricoles nouvelles et en phase de démarrage en Afrique de l’Est. Le fonds cible les marchés d’exportation et une production alignée sur les objectifs climatiques. Il combine des investissements en capital avec un accompagnement actif en création et en développement d’entreprises afin de bâtir des entreprises phares capables de croître à grande échelle. 
 
__Transform & Adaptation Fund (TAF) par [AfricInvest](https://www.africinvest.com/) et par [Thirdway Partners](https://www.thirdway.earth/)__ 
un fonds de dette privée axé sur l’adaptation aux changements climatiques, qui investit dans l’agriculture résiliente et la chaîne de valeur alimentaire, la mobilité durable ainsi que le secteur du cadre bâti, dans différents marchés d’Afrique et d’Amérique latine. 

Ces véhicules de financement mixte couvrent une gamme de classes d’actifs, de zones géographiques et de secteurs, y compris la dette privée et les capitaux propres, les infrastructures, l’agriculture, l’énergie et l’adaptation au climat. Collectivement, ils reflètent la sophistication croissante des gestionnaires de fonds qui conçoivent des structures visant à répondre aux attentes de risque-rendement des investisseurs institutionnels. Nous tenons également à remercier les gestionnaires de fonds et d’actifs basés au Canada qui ont participé au premier appel de propositions. A4FM demeure déterminée à renforcer l’écosystème et à accroître la capacité des acteurs institutionnels canadiens à s’engager de façon significative dans des initiatives de financement mixte à l’échelle mondiale.

 « La profondeur et la nature du premier tour de candidatures de l’Accélérateur A4FM démontrent clairement l’appétit pour le financement mixte en tant qu’outil de structuration clé pour faciliter l’investissement institutionnel dans les économies émergentes et en développement à grande échelle. Nous félicitons ces candidats de premier plan pour la conception de structures innovantes et investissables qui déploient un capital catalytique pour surmonter les obstacles réels du marché et ouvrir la voie à l’investissement commercial sur des marchés traditionnellement sous-capitalisés. » 
 
— *Leah Pedersen, directrice principale, Accélérateur de financement mixte, Convergence*

Un sous-ensemble de ces propositions fera l’objet d’une vérification diligente plus approfondie, à la suite de laquelle certains véhicules d’investissement pourraient être recommandés au Comité d’investissement en vue d’une attribution. Restez à l’affût de la liste finale des lauréats ainsi que du prochain appel de propositions d’A4FM, dont le lancement est prévu en avril 2026.

The semi-finalists for Convergence’s Blended Finance Accelerator for Fund Managers (A4FM) have been announced!

Semi-Finalists Announced: A4FM First Call For Proposals

Semi-Finalists Announced: Blended Finance Accelerator for Fund & Asset Managers First Call For Proposals

The [Indo-Pacific NGO Blended Finance Accelerator](https://www.convergence.finance/accelerator/dfatngo), an initiative launched by the [Australian Department of Foreign Affairs and Trade (DFAT)](https://ministers.dfat.gov.au/minister/pat-conroy/media-release/innovative-indo-pacific-ngo-accelerator-boost-development-projects) in partnership with Convergence Blended Finance, completed its first Call for Proposals with a strong and diverse response from NGOs seeking to mobilize private capital for climate action and gender equality outcomes across the Indo-Pacific.

With over 80 applications received, the response underscores the growing ambition of NGOs to participate in blended finance transactions amid persistent financing gaps and grant and donor funding volatility, particularly in underserved and climate-vulnerable markets.

Convergence’s Market Data indicates that only 17% of all blended finance transactions have an NGO participating in developing and implementing the transaction, highlighting a clear gap between interest and participation. Consultations conducted by Convergence highlight several key barriers faced by NGOs, including limited technical expertise in structuring financial vehicles, regulatory constraints, and challenges in securing organizational buy-in.

This Accelerator provides vital support to strengthen the role of NGOs in blended finance transactions, enabling them to design, pilot, and scale innovative projects, as impact managers, technical assistance providers and, where suitable, fund managers.

Against this backdrop, it is encouraging to see a diverse range of applications, spanning early-stage concepts to near-investment-ready vehicles, with a strong focus on solutions targeting women-led enterprises and climate-resilient business models.

Following a competitive review process, the proposals advancing to the full proposal stage demonstrated strong alignment with the Accelerator’s objectives. These included solutions in which NGOs played a central role in the design and implementation, with clear value propositions for target markets, strong organizational commitment, locally anchored delivery models, and credible potential to address development finance gaps through innovative blended finance structures. Common across the cohort is a strong emphasis on small and medium-sized enterprise (SME) financing, particularly in undercapitalized markets, alongside the use of blended instruments including guarantees, private credit, equity funds, trade finance facilities, bonds, and project finance structures.

Spanning multiple regions and asset classes, the proposals consistently target persistent market constraints such as perceived credit and currency risk, limited risk appetite for early- and growth-stage enterprises, and restricted access to working capital and long-term finance for women-led and climate-focused SMEs.

Collectively, these proposals reflect a clear shift toward integrated, intersectional solutions that address cross-cutting themes of climate resilience, healthcare delivery, sustainable agriculture, nature-based solutions, and gender that remain underserved by traditional financial markets.

## Semi-Finalists for the First Call for Proposals 
(Presented in alphabetical order) 

__[Caritas Australia’s](https://www.caritas.org.au/?srsltid=AfmBOoqaNQUVutQWGwVH1DN53DlaCVMKh-ZI2TO8-VY1jxA0b62-nr-D) Lumana Health Facility__ 
A facility expanding reliable solar energy across rural health facilities in Papua New Guinea, strengthening climate resilience and healthcare delivery in remote communities in partnership with Catholic Church Health Services (CCHS), TAG Energy PNG, and [bechtel.org](http://bechtel.org/) 
 
__[Goodreturn](https://goodreturn.org.au/) Impact Investment Fund II__ 
A blended finance fund supporting local financial service providers across the Pacific and Southeast Asia to lend to new markets through a credit guarantee and technical assistance sidecar, with a focus on women-led SMEs. 
 
__[Grameen Foundation](https://grameenfoundation.org/her-outcomes/resilience) and [IIX's](https://iixglobal.com/) InvestHER Climate Resilience Bond for Women__ 
A blended bond designed to channel capital to women-focused SMEs with high-impact green and blue economy solutions in the Philippines. 
 
__[Oxfam Australia](https://www.oxfam.org.au/) and [OBOR](https://obor.asia/)’s Equi Green Fund (EGF)__ 
A private investment fund providing flexible capital to inclusive, gender-responsive, and climate-resilient growth stage SMEs across Southeast Asia. 
 
__[Red Hat Impact](https://redhatimpact.com/), [ICDP](https://www.icdp.com.au/) and [Criterion’s](https://www.criterioninstitute.org/) Indo-Pacific Trade Finance Vehicle for Women’s MSMEs (TFV 2.0)__ 
A trade finance facility addressing working capital constraints for women-led MSMEs across the Pacific and Southeast Asia. 
 
__[Save the Children Global Venture’s](https://scgv.org/) Asia Health Care Fund__ 
A private equity fund investing in early- and growth-stage healthcare ventures across the Pacific and Southeast Asia. 
 
__[Transform Aid International (TAI)’s](https://transformaid.org/) Climate Resilient Livelihood Facility (CRLF)__ 
TAI and partners, Baptist Aid-Bangladesh Baptist Church Fellowship (BBCF), PARI Development Trust (PARI), Protibondhi Community Centre (PCC), Brightlight, and LINC Strategies are developing a private credit facility channelling catalytic capital into locally led, climate-resilient, women-led enterprises targeting agricultural markets in Bangladesh. 
 
__[World Vision Australia](https://www.worldvision.com.au/) and [Vision Fund International’s](https://www.visionfund.org/) Women’s Green Enterprise Guarantee Facility__ 
World Vision Australia is partnering with World Vision in Sri Lanka and Cambodia, and with Wahana Visi Indonesia, to develop a guarantee facility that de-risks lending to women-led MSMEs delivering climate-resilient solutions across South and Southeast Asia. 
 
__[WWF](https://www.wwf.sg/) and [Terraformation’s](https://terraformation.com/) CANOPY Blended Finance Facility for Biodiverse Mangrove Restoration__ 
A project finance facility supporting community-driven mangrove restoration and reforestation projects across the Asia Pacific. 
 
__[Xpand Foundation](https://xpand.net.au/), [Pollination Group](https://pollinationgroup.com/), and Foundation Rai Matak's Rai Matak Global__ 
An agroforestry financing platform designed to scale community-led agroforestry forests in Timor-Leste. 

These semi-finalists reflect the breadth of innovation emerging from NGOs applying blended finance to address climate and gender challenges across the Indo-Pacific. Spanning multiple vehicle types, they demonstrate how NGOs can design investable solutions that mobilize private capital while delivering measurable development impact.

“The strong response to this first call demonstrates pent-up demand among NGOs for private sector financing tools that scale-up impact for their end beneficiaries. By supporting NGOs in pursuit of blended finance solutions, the Accelerator will tap new wells of opportunity to attract private capital for community resilience and mission-driven economic growth across the region”, Convergence Senior Director, Leah Pedersen.

A subset of these proposals will undergo further detailed due diligence and will be considered for award consideration.

Stay tuned for the final list of awardees and for future call for proposals, and congratulations to these semi-finalists.