AGES-REG---1200x628

__February 24-27, 2025, Cape Town, South Africa__

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Don’t miss [Africa's Green Economy Summit](https://wearevuka.com/green-economy/ages/) in Cape Town from February 24-27, 2025. The Summit will bring together the global investor community, project owners and business executives focused on green transport, renewable energy and clean technologies, African governments, cities, and policy makers to pave the way for an inclusive green economy and a sustainable future.

Convergence is a supporting partner of the Summit.

Africa's Green Economy Summit 2026

Don’t miss Africa's Green Economy Summit in Cape Town!

Africa's Green Economy Summit

acs infosession dec25 v2

We invite you to join us virtually for an information session on the [Asia Climate Solutions (ACS) Design Grant](https://www.convergence.finance/accelerator/acs).

The ACS Design Grant awards feasibility study and proof-of-concept grants for the design and launch of innovative blended finance solutions that mobilize private capital to sectors critical for climate transition and resilience in developing markets in Asia.

The current grant cycle will have a thematic focus on solutions in the clean energy, blue economy, and sustainable cities and infrastructure sectors. The solutions should leverage blended finance to mobilize local public, private, and philanthropic capital to scale climate mitigation and adaptation initiatives benefiting local communities across the Asia-Pacific region. 

Register for the webinar to:
- Learn more about Convergence’s Blended Finance Accelerator Program and the ACS Design Grant
- Gain insight into how to apply, grant eligibility, and evaluation criteria
- Get your questions answered, and more

The anchor donors of this initiative are the Monetary Authority of Singapore, Department of Foreign Affairs and Trade Australia, Olayan Group, UBS Optimus Foundation, and The Rockefeller Foundation.

The ACS Design Grant is now open. The deadline to submit concept notes is __January 11 at 8:00PM ET/January 12 at 9:00AM SGT__. Learn more and apply [here](https://convergence.submittable.com/submit).

Asia Climate Solutions Design Grant: Info Session

Join us virtually to gain insight into the application process for the Asia Climate Solutions Design Grant

Learn about the Asia Climate Solutions Design Grant

BLENDED-FINANCE---1200X628

__Wednesday, December 10th, 4:00pm EAT__

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Africa faces a defining challenge - and opportunity - in financing its green transition.

According to Convergence, blended finance has already mobilized over $90 billion across the continent, mostly in energy and infrastructure. Yet major opportunities remain in agriculture, nature-based solutions, and climate resilience - especially those tapping into local capital markets.

This webinar explores the next frontier of blended finance innovation - showcasing practical strategies to de-risk investments and attract both international and local private capital.

The webinar will feature:
- A clear view of Africa’s blended finance landscape and emerging trends
- Insights into deal structures that mobilize private investment
- Practical de-risking strategies to make projects bankable
- Case studies of successful climate and green economy transactions

Structuring for Scale: How Blended Finance Can Unlock Bankable Green Projects in Africa

This webinar explores the next frontier of blended finance innovation - showcasing practical strategies to de-risk investments and attract both international and local private capital.

Blended Finance for Green Projects in Africa

Deal Connect: December 2025

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

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

During the session, we will present two opportunities:

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

 

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

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

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

networking event flier

__Thursday, November 27th, 5:30pm – 8:00pm EAT__

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Embassy of the Kingdom of the Netherlands in Kenya, Rebel Advisory East Africa, and Convergence Blended Finance invite you to a networking event in Nairobi. 

The session will bring together partners of the organizers and other stakeholders working in nature-based solutions comprising impact investors, institutional investors, donor agencies, development banks, and sponsors of blended finance deals. Attendees will have the opportunity to connect with like-minded individuals/institutions engaged in blended finance, make new contacts, exchange ideas, and more.

If you'd like to attend please reach out to __basil.kandaya@convergence.finance__.

*Registration is open on a first come, first served basis.*

Networking Reception: Blended Finance as a Catalyst for Scaling Nature-Based Solutions

Join the Embassy of the Kingdom of the Netherlands in Kenya, Rebel Advisory East Africa, and Convergence Blended Finance for a networking reception in Nairobi, Kenya

Networking Reception in Nairobi

The Role of Insurance in Blended Finance: From Risk Solutions to Investment Capital

Insurance remains a powerful yet still limited tool in blended finance, one that holds untapped potential to mobilize private capital and enhance risk management. The insurance sector can be a multi-dimensional partner in blended finance, contributing market expertise, risk solutions, and capital. Their engagement can span three key roles: (i) as __Risk Advisors__, guiding the design and feasibility of blended finance transactions; (ii) as __(Re)Insurers__, providing coverage within de-risked blended transactions or underwriting blended insurance products supported by concessional capital; and (iii) as __Investors__, deploying assets under management into blended vehicles.

The session will open with key insights, data, and trends from our latest "Playbook on the Insurance Sector’s Roles in Blended Finance at the Climate-Health Nexus" produced in partnership with the Global Asia Insurance Partnership (GAIP). This will be followed by two 20-minute case study presentations, each demonstrating a distinct way the insurance sector can engage in blended finance:

__Room2Run (AfDB)__: A landmark USD 2 billion synthetic risk transfer enabled the African Development Bank to free up lending capacity for high-priority sectors, especially climate finance. Through this transaction, the UK’s Foreign, Commonwealth & Development Office (FCDO) and three private insurers provided risk coverage on the Bank’s sovereign portfolio, creating new headroom for fresh lending across regional member countries.

__IDI Sao Mai and AquaOne (GuarantCo)__: showcasing how a full guarantee attracted insurance investors to finance national infrastructure.

Join us on 26 November at 9:00 AM ET for this webinar featuring expert speakers from across the insurance and blended finance ecosystem.

Member Training: The Role of Insurance in Blended Finance: From Risk Solutions to Investment Capital

Join us for our next member training exploring the role of insurance in blended finance.

Indo-Pacific NGO Blended Finance Accelerator: Information Session

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

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

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

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

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

https://www.youtube.com/watch?v=nphHFV67QR0

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

__What we covered at the launch:__
 
- An overview of the Indo-Pacific NGO Blended Finance Accelerator and how it supports NGOs in the region
- Insights from DFAT Australia on their vision and objectives for the program
- Insights from an NGO grantee on designing blended finance vehicles and mobilizing capital
- Details about the application process, including eligibility criteria and how proposals will be evaluated
- Questions and answers about the intiative.
 

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

DFAT NGO Accelerator Slide deck

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

Info Session: Indo-Pacific NGO Blended Finance Accelerator

saopaulonetworking nov25 web v2

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

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

Registration is open on a first come first served basis.

Member Networking Breakfast in São Paulo

Join us for a networking breakfast in São Paulo.

Networking Event in São Paulo

COP30-DeRisking-Latam-Event

__Tuesday, November 4, 4:30pm BRT__

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

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

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

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

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

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

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

De-Risking Latin America & Caribbean

CBF-Forum-Launch-websitebanner

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

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

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

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

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

Global Blended Finance Forum

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

Convergence Global Blended Finance Forum

sobf25 climate web v2

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

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

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

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

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

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

2025 State of Climate Blended Finance Virtual Launch

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

2025 State of Climate Blended Finance Launch

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

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

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(Le français suit/French follows) 
 

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

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

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

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

(FRANÇAIS/FRENCH)

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

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

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

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

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

Blended Finance Training for Canadian Fund & Asset Managers

Across the world, more than [675 million people still live without access to electricity](https://www.worldbank.org/en/topic/energy/overview), the vast majority in Sub-Saharan Africa. Yet the continent’s energy potential is immense. With solar energy now ranking among the most affordable power sources globally, distributed renewable systems,(e.g., mini-grids, agri-solar, and commercial and industrial (C&I) installations) offer a scalable path toward universal energy access.

However, mobilizing investment at scale remains a major hurdle, as [Africa currently receives under 2% of global clean energy finance](https://www.iea.org/reports/financing-clean-energy-in-africa/executive-summary). Bridging this gap requires innovative mechanisms that can attract commercial capital into high-impact sectors. This is where blended finance can make a difference, by using catalytic public and philanthropic capital to de-risk investments and crowd in private capital for sustainable, inclusive growth. 

__Proof of Concept Grant for the Mirova Gigaton Fund__

Convergence awarded a proof of concept grant to Mirova under the Gender-Responsive Climate Finance Window funded by Global Affairs Canada (GAC), for the design of the Mirova Gigaton Fund (MGF), a $400 million blended finance vehicle designed to scale high-impact distributed energy and climate investments in Sub-Saharan Africa, South East Asia, and Latin America. The Fund’s goal is to address energy poverty and advance an equitable, low-carbon world powered by clean energy.

MGF provides long-term, flexible debt, typically averaging $10 million per investment, to small and medium-sized enterprises (SMEs) across the Global South, bridging a critical financing gap for companies operating in underserved markets. The Fund targets commercially viable models across six key sectors: Commercial and Industrial (C&I) solar, solar home systems, telecom energy services, mini-grids, agri-solar, and emerging technologies such as e-mobility and battery storage.

The Fund’s blended structure layers junior equity and senior debt plus a super-senior tranche designed for institutional investors, complemented by a partial portfolio guarantee from the Swedish International Development Cooperation Agency (SIDA).

To enhance both financial and developmental outcomes, the Fund is supported by a Technical Assistance (TA) Facility that helps portfolio companies strengthen ESG practices, improve gender inclusivity, and build operational capacity.

__Climate and Gender Lens__

Climate and gender impact are embedded at the core of MGF’s mission.

Mirova has positioned MGF as a leading gender-lens investing vehicle. The Fund is officially 2X Challenge-qualified, meeting both the direct criteria (i.e.,entrepreneurship, leadership, consumption, and employment) and the indirect criteria for financial intermediaries. Approximately 50% of MGF’s portfolio is targeted toward 2X-aligned investees, with the remainder supported through the Fund’s TA Facility to achieve gender alignment.

This TA Facility provides hands-on support for investees seeking to implement gender action plans, improve workplace equality, and strengthen gender performance. By helping investees institutionalize gender equity, MGF not only advances inclusion but also drives stronger business results.

Finally, by making flexible, long-term capital available to SMEs, MGF advances climate mitigation outcomes while improving livelihoods.
Since its launch in 2023, the Fund has enabled first-time energy access for approximately 4.6 million people, half of them women, while avoiding 8 million tons of CO₂ emissions and supporting around 60,000 jobs across its portfolio.

__Takeaways from the Design Process__

Like other practitioners developing blended finance instruments, Mirova’s design process for MGF was complex and iterative. Their experience offers valuable lessons for practitioners on a similar journey, many of which are captured in the [case study co-published by Mirova and Convergence](https://www.convergence.finance/resource/structuring-a-blended-fund-lessons-from-mirova-gigaton-fund-in-frontier-and/view).  Reflecting on MGF’s design process, there are at least 2 takeaways for practitioners going through a similar design journey as Mirova.

First, building agility into the vehicle structure while prioritizing simplicity and relevance to market context is crucial for long term success. Within the Convergence’s Blended Finance Accelerator programs, we sometimes find practitioners trying to develop very complicated vehicle structures. The best practices we have seen over time, and shown by Mirova’s case, is that blended structures work best when they are simple enough for relevant stakeholders to understand and also address the requirements of various investor groups. 

In Mirova’s case, the team designed a three layered structure - a simple modification of the basic two layer structure - with super senior debt (targeting private investors such as pension funds, family offices and insurers), senior debt (a mezzanine layer tailored to meet the needs of DFIs), and a catalytic junior layer (to pool capital from development agencies and foundations that play a catalytic role in absorbing initial losses). This was done to simplify the design and to meet the expectations of different stakeholder groups.

Also, Mirova’s initial design included a fixed interest rate based on the market trends in 2021 when the Fund was initially designed. Starting late 2021 through 2022 and 2023, interest rates began to rise. In response to the evolving interest rate environment, MGF explored options of floating interest rates or updating conditions offered to private investors. Since the market at the time was not comfortable with a floating interest rate design, MGF settled on offering higher interest rates to the two senior tranches without altering the fund structure.

Second, where possible, complementing the vehicle structure with innovative elements strengthens the overall vehicle structure and builds interest for the vehicle in the ecosystem. In Mirova’s case, they chose to pursue a combination of innovative financing mechanisms such as a credit rating for the senior most tranche (though it did not materialize as intended for reasons outlined in the [case study](https://www.convergence.finance/resource/structuring-a-blended-fund-lessons-from-mirova-gigaton-fund-in-frontier-and/view)), innovative risk sharing agreements such as a partial portfolio guarantee, and customized technical assistance via their TA Facility. These elements together make the MGF’s structure unique, while improving acceptance of the vehicle among various stakeholders.

The grant from Convergence was instrumental for Mirova to continue scoping and refining the vehicle structure.  In addition to refining fund design, Convergence's support to the MGF also helped them finetune their TA facility design, enabling them to better integrate a gender lens into the Fund’s strategy and marketing. 

__The Way Forward__

The Mirova Gigaton Fund reached its third close in January 2025, with total commitments exceeding $330 million, a substantial share of which came from private investors. MGF is now firmly in its deployment and management phase, focusing on supporting the sustainable growth of its investee companies across Sub-Saharan Africa, South-East Asia, and Latin America.

MGF’s case exemplifies how a blended finance vehicle can be designed to accelerate clean energy transition in frontier and emerging markets. Ultimately, it shows that well-structured catalytic capital can crowd in commercial investment at scale, channeling much-needed financing into high-impact sectors otherwise left underfunded.

As the Fund continues to deploy capital and gender-focused TA support, it offers a blueprint for future climate finance vehicles seeking to combine financial returns, inclusion, and impact.


Designing for Scale: Mirova’s Gigaton Empowerment Fund and Lessons in Climate and Gender Finance

Mirova’s Gigaton Empowerment Fund

Finance in Motion is a global impact asset manager that aims to deliver diversified, risk-mitigated returns with impact. Their financing solutions address climate change, biodiversity loss, and social inequality. Over 20 years they have invested across 44 high-growth economies and have local expertise from Latin America to Eastern Europe. 

We spoke with Sylvia Wisniwski, CEO at Finance in Motion, about how they engage in blended finance, their geographic and sectoral foci, impact measurement, how they apply a gender lens in their work, and more.

__How do you engage in blended finance?__

Blended finance is a core pillar of our approach. We manage and advise tiered alternative investment fund structures where catalytic funding from public or multilateral development bank/development finance institution investors helps de-risk commercial investments, providing an attractive risk-return to institutional investors. This allows us to mobilize significant private capital into emerging markets where financing gaps are largest.

__Do you have a specific geographic or sectoral focus when it comes to blended finance?__

Our blended finance activities focus solely on emerging markets in Latin America, Africa, Eastern Europe, and the Middle East. From a thematic point of view, we focus on green and social funds. Our green funds invest in climate mitigation and adaptation, biodiversity, sustainable agriculture, and circular economy. Our social funds focus on financial inclusion, supporting micro, small, and medium enterprises (MSMEs) and underserved groups. These are high-impact areas where blended finance can make a measurable difference alongside generating adequate risk-return for investors.

__Can you tell us about a specific blended finance deal Finance in Motion was involved in? What were the conditions and were certain instruments used and why?__

We manage or advise five private debt funds that are all blended finance vehicles with a total of more than EUR 4 billion in catalytic and private capital. These blended finance funds are evergreen. They are under constant fundraising — and have been very successful in raising private capital. 

Instead of de-risking single investments, we use credit enhancement instruments at the portfolio level. Through this approach, we use catalytic funding on a rolling basis as portfolio composition changes over time, maximizing the impact of the first- and second-loss capital. This enables the creation of flagship funds like the [European Fund for South-East Europe](https://efse.lu/) and the [Green for Growth Fund (GGF)](https://www.ggf.lu/) which both at present have over EUR 1 billion in assets under management. Around EUR 8 billion has been invested via these two funds alone over the past 15 years. 

Let us take a closer look at the GGF. It was initiated by KfW Development Bank and European Investment Bank (EIB) in 2009 with first-loss funding from the European Commission and the German government. International finance institutions like EIB, KfW, European Bank for Reconstruction and Development, Dutch Entrepreneurial Development Bank, and Development Bank of Austria invested senior share capital making it a true “Team Europe” initiative. The International Finance Corporation invested as well. The share capital enabled investments from institutional investors into the fund due to its de-risking effect. With this capital base, GGF creates impact in 19 countries spanning the Western Balkans to the Middle East. GGF offers renewable energy, energy efficiency, and energy security investment opportunities through indirect financing (loans via local partner banks) and direct corporate and project finance. 

In addition to the catalytic effects in the capital structure, we have also engaged recently in a guarantee arrangement benefiting the asset side of our funds. We signed an unfunded guarantee with the Swedish International Development Cooperation Agency for the GGF amounting to EUR 60 million to increase the rate of green lending in selected countries of the Western Balkans and the EU Eastern Neighborhood beyond what we could do with first-loss capital. The interesting piece is that we kept the guarantee component outside of the capital stack or fund structure, making operations much simpler and straightforward.

__How do you measure the impact and evaluate the success of blended finance transactions?__

All our investments must pass through the three lenses of impact, risk, and return. Each fund is guided by an impact framework aligned with global standards like the Operating Principles for Impact Management, the Sustainable Development Goals, International Capital Market Association Green Bond Principles as well as relevant regulations like Sustainable Finance Disclosure Regulation and the EU Taxonomy.  

We track metrics aligned to the respective impact objectives pursued per fund, including greenhouse gas emissions avoided, hectares of land under sustainable management, jobs supported, or SMEs financed. Success, of course, is measured not only by direct outcomes but also by systemic change. For example, whether new green market standards are adopted by our investees, or whether investees continue to issue green products beyond our support.

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

Gender considerations are mainstreamed across our investment process, particularly for our social funds. For example, the [SANAD Fund for MSME](https://sanad.lu/) actively supports women entrepreneurs through financing and capacity building programs. To inform these investments, we assess gender impact during the due diligence process. We also track gender data, encourage financial institutions to expand services for female clients, and increasingly align our work with the [2X Challenge](https://www.2xchallenge.org/) criteria to ensure women benefit as business owners.

__What are some interesting or unexpected challenges or learnings that you’ve had in the blended finance space thus far?__

One key learning is that blended finance requires alignment between the expectations of different stakeholders, from catalytic investors focused on impact, additionality, and leverage, to institutional investors seeking risk-adjusted returns. This requires careful structuring of blended finance vehicles and transparent communication.

At the same time, the complexity of many blended finance structures may weigh heavily on operating costs. In view of current fee compression in the asset management industry globally, many blended finance structures can only be financially sustainable if they operate at large scale.

Another challenge is timing. While structuring blended finance instruments and mobilizing catalytic capital needs time, investor needs and capital markets may change quickly. To make both come together at an agreed point in time is an art!

__What advice would you give to other organizations looking to enter or scale their efforts in blended finance?__

There is a tremendous wealth of literature about different blended finance models. Don't start from scratch, but do proper market intelligence and study the lessons learned from different blended finance models. Recently, Convergence has conducted helpful research in this context through its Scale Private Investment Mobilization Project, listing [blended finance models with different purposes](https://www.convergence.finance/standardization).

At the same time, blended finance has substantially changed over the past years. Today, blended finance structures must crowd in private capital at scale right from the start. It is also expected that there is as little blending as possible, while generating much larger leverage compared to old blended finance models. We also observe increasingly a combination of different types of blending instruments, funded first-loss capital combined with unfunded guarantees or several layers of guarantees. Furthermore, there must be proof of additionality and of the “paradigm shift” that catalytic capital enables. This requires sound impact measurement and management systems.

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

As we wrap up 2025, looking ahead, we expect to deepen our focus on climate and nature finance.  Given our geographic focus on emerging markets, catalytic capital will continue to play an important role. Our goal is to mobilize even larger pools of institutional capital by offering products that combine measurable impact with robust risk-return profiles. In short, we see blended finance evolving from niche innovation to mainstream practice and [Finance in Motion](https://www.finance-in-motion.com/) intends to remain at the forefront of that shift.

Finance in Motion Member Spotlight with Sylvia Wisniwski

Earlier this month, Convergence hosted its inaugural Global Blended Finance Forum in Washington DC to celebrate its 10 year anniversary.

The Forum brought together over 200 participants from the public, private, and philanthropic sectors, from over 40 different countries. It was hosted at a moment where blended finance hovers at an important inflection point. As ODA diminishes, it is an opportunity for blended finance to be more strategic, efficient, and fit-for-purpose. We saw the Forum as a moment to think about the progress that has been made and to define the next decade.

As such, the Forum covered a range of the most pressing issues in blended finance today, including the reality of diminishing ODA, the importance of local capital mobilization, the emerging role of insurance, the rising interest in guarantee structures, the imperative for standardization, and much more.

Participants were treated to a variety of formats and opportunities to network, including an optional blended finance primer, roundtables focused on specific topics, regional break out groups, in addition to panels and spotlight sessions.

__Below are some takeaways from the Forum:__

1. __A hunger for collaboration and community__: As the consequences of reduced foreign aid budgets begin to ripple through the blended finance market and beyond, a palpable sense of urgency, paired with a strong desire for community, defined the Forum. Attendees were eager to engage openly and substantively with each other. Blended finance is, by nature, a fragmented field, but the Forum made it clear that the practitioners driving these deals are determined to change that. Across three days, we heard from a wide diversity of voices and witnessed vital connections forming across sectors and regions. 

2. __Standardization was the word of the day__: Standardization emerged as a critical enabler for scaling blended finance by improving efficiency, reducing transaction costs, aligning objectives, fostering collaboration, and building investor confidence. Attendees recognized that blended finance must evolve from generating bespoke deals to also delivering standardized, scalable instruments to unlock the vast capital needed for sustainable development. This sentiment was echoed by Matt Kaczmarek, Head of Emerging Market Credit Strategy at BlackRock, during the Forum’s opening keynote, “To amplify impact and scale investment in emerging markets, we must standardize our approaches—building common frameworks, clear objectives, and investor-friendly structures that reduce complexity and enable efficient, large-scale collaboration.” ![Matt Kaczmarek](//images.ctfassets.net/4cgqlwde6qy0/1Ju3PSS5TYQEx7yfYpE9Yv/21a16885b3d57067a596e9d5f3b7ff98/IMG_6016.jpg) Many attendees are actively working on standardization. In a [session](https://youtu.be/cRubTG2SHhA?si=ZR-_Spszbq2zSc2q) on navigating declining ODA, Geneviève Brown, Executive Director of the Innovative Finance at Global Affairs Canada, discussed the G7’s recently launched [Common Principles for Private Capital Mobilization initiative](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), which provides a roadmap for transparency, alignment, and collaboration between public and private actors. She described how they are working with the [SCALED](https://scaledevelopment.org/) initiative to put those principles into action by identifying straightforward investment vehicles with standard terms that are familiar. Chris Clubb, Managing Director at Convergence, also presented Convergence’s efforts to move the field towards [standardization](https://www.convergence.finance/standardization) by identifying 12 Private Investment Mobilization Models as effective and efficient approaches to standardize and scale SDG and climate investment in developing countries. ![Blended Finance 2.0: Standardizing Investment Models for Scale](//images.ctfassets.net/4cgqlwde6qy0/4Eoogy3TFNMGqFUQu0gLkd/3ddde2952441a24c24ed60a015e3f4e4/IMG_6741.jpg) During the [session](https://youtu.be/boLYIA8aJDc?si=cJ-vpwOUiBEzj2Q8) Blended Finance 2.0: Standardizing Investment Models for Scale, panellists discussed the challenges to standardization, on balancing innovation and replication, and the importance of collaboration among donors, development finance institutions, and private investors. Susanna Gable, Deputy Director, Development Policy & Finance at Gates Foundation, made the point that for blended finance to meet its potential, it must standardize, “Standardization acts as a risk reduction tool for both donors and private investors by lowering transaction costs and accelerating deal phases. There is no other way to scale blended finance other than through standardization. It also sends a strong market signal that blended finance is serious, efficient, and impactful, though we must be mindful of its limitations in harder markets.” 
3. __Growing enthusiasm for the insurance sector__: With their deep expertise in risk modelling, product innovation, and capital allocation, insurers are a natural fit for blended transactions, yet they are relatively new entrants to the market. As a result there was a lot of enthusiasm around the potential of the insurance sector. The role of insurers and how best to engage them came up frequently throughout the Forum. At the Forum, Convergence launched, in partnership with the Global Asia Insurance Partnership (GAIP), [a Playbook on the Insurance Sector's Roles in Blended Finance at the Climate-Health Nexus](https://www.convergence.finance/resource/playbook-on-the-insurance-sectors-roles-in-blended-finance-at-the-climate/view). The playbook provides a practical roadmap for the insurance sector to act as risk advisors, capital providers, and enablers of tailored protection within blended finance structures that target climate-health resilience. It also explores how donors, DFIs and MDBs can support insurance participation in blended finance. A number of new initiatives involving the insurance sector were discussed, including the Insurance Development Forum, a coalition of large global insurance companies co-chaired by the World Bank and the United Nations Development Program. Mr. Kaczmarek discussed BlackRock’s partnership with them to develop the [Infrastructure Resilience Development Fund](https://www.insdevforum.org/press-release-insurance-development-forum-announces-first-close-of-infrastructure-resilience-development-fund-for-resilient-infrastructure-projects-in-emerging-and-developing-economies/?utm_source=chatgpt.com), which is focused on resilience and adaptation and provides insurance companies with a diversified emerging market infrastructure credit portfolio to complement their existing investment in developed markets. The Fund officially launched and began deploying capital in October. “Insurers manage $30 trillion in assets with only about 3% on average allocated to emerging markets and almost all of that in public market assets. A small allocation by this massive sector would send hundreds of billions of dollars of new investment to emerging markets,” stated Mr. Kaczmarek. ![Min Hung Cheng](//images.ctfassets.net/4cgqlwde6qy0/1LKJM8GIefI0LGHliyTZmF/c1b9e501e2faa1ddc93818076b082136/IMG_6768.jpg) In a [session](https://youtu.be/ILdb_yfo3PY?si=p_frY0xWVvwq6BKW) focused on insurance that explored the value insurers can bring as risk advisors, insurers, and investors to crowd in private capital, Min Hung Cheng, CEO at GAIP, highlighted the importance of integrating insurance expertise early in project planning and risk assessment, which requires standardized approaches and frameworks that facilitate early collaboration. “The insurance sector can bring a lot of value, but you can only maximize that and optimize that if you bring them in early. Don’t bring them in on page 105 of appendix 5. Bring them in earlier and they can do a lot more,” stated Ms. Cheng. To underscore the critical role insurance plays in making investments viable by managing risk, Ms. Cheng quoted the Prime Minister of Barbados, Mia Mottley, concluding that “What’s uninsurable is not investable. What’s uninsurable is not bankable either.” 
4. __Guarantees emerged as a popular tool__: Throughout the Forum guarantees were highlighted as an increasingly important instrument to mobilize private capital efficiently, especially amid declining ODA budgets and mounting fiscal pressures. ![Christian Brändli](//images.ctfassets.net/4cgqlwde6qy0/2M80rJR4AnSyUc6Rr7w0kW/2880fb13c058163ee747da47d628e413/IMG_6095.jpg) Christian Brändli, Head Private Sector Development at SECO, emphasized how guarantees, especially portfolio guarantees, are among the most effective blended finance tools in terms of mobilizing private sector funds per concessional dollar invested. He provided the example of Guarantco, the guarantee arm of the Private Infrastructure Development Group, which has demonstrated strong leverage by mobilizing $5.7 billion with only about $300 million of paid-in equity. Christian also made the point that the use of guarantees has the potential to enable a gradual reduction of concessionality, “They provide real-world evidence that the perceived risks of investing in emerging markets is often higher than actual risks. And if we apply guarantees repeatedly and systemically, you can track how concessionality levels decrease over time as the markets mature.” In some cases, concessional capital is not needed at all. Lasitha Perera, CEO at Development Guarantee Group, in a later [session](https://youtu.be/C0GnU3YElaY?si=Lp7tYnxmBMNtXR4X) on Financing Climate-Smart Infrastructure, described the establishment of the Green Guarantee Company that operates commercially without concessional capital and helps to mobilize private capital by providing commercially rated (BBB stable) guarantees.![Lasitha Perera](//images.ctfassets.net/4cgqlwde6qy0/4z327pGGcIYPHxDdPiyHza/8b38f16a0eeaeeb6466af1aeff5cd252/IMG_6875.jpg) In the same session, Maheen Rahman, CEO at Infra Zamin Pakistan noted how guarantees serve not only as risk mitigation but also as market signals to stimulate commercial lending in underbanked sectors. As the guarantees cover local currency exposures, they become a popular tool for local private companies as well as local banks to move into new lending markets. 
5. __A palpable optimism__: Finally, the overwhelming sentiment throughout the Forum’s two and half days was optimism. Despite the many challenges facing blended finance and the market's still-tentative growth, attendees expressed confidence in the decade ahead. The past ten years have laid the foundation and built a solid evidence base, crystallizing lessons learned and clarifying what works, what doesn’t, and what works better. Participants left with a shared intent to move decisively from experimentation to standardization, replication, and scale. ![Global Blended Finance Forum](//images.ctfassets.net/4cgqlwde6qy0/1Opz1FZrgRcVhO7h6iSj0v/56a97e3225442d68316c4ac3cee1ed46/IMG_7398.jpg)

Reflections and takeaways from the Global Blended Finance Forum

Global Blended Finance Forum takeaways and reflections

RDF Ghana promotes access to finance for Micro, Small and Medium Sized Enterprises (MSMEs) engaged in the business of agriculture and/or renewable energy, especially women-owned businesses.

We spoke to Yaw Oppong, CEO at RDF Ghana about their origins, impact, gaps and opportunities they see in the field, how they see their activities evolving in the future, and much more.

__Please tell us about the origins of RDF Ghana and what market failures you were set up to solve.__

RDF Ghana is an impact-driven institution, founded in 2016 by the Government of Ghana and Impact Fund Denmark. The creation of RDF Ghana was driven by the need to address the limited access to affordable credit for MSMEs in the agriculture and renewable energy sectors. RDF Ghana was also established to strengthen the capacity of Partner Financial Institutions (PFIs) and value chain actors, addressing constraints that have limited effective credit utilization. With seed funding from the Danish Government, we began as a wholesale fund channeling capital through PFIs, particularly rural banks, to underserved markets. We have since evolved into a dynamic institution also providing direct financing and capacity-building to smallholder farmers organized as outgrower businesses and Village Savings and Loans Associations (VSLAs). Our work systematically de-risks investments, builds climate resilience, and enhances the economic empowerment of women and youth.

__Describe your guarantee, line of credit, and technical assistance business. How do these offerings work together? What kinds of businesses / financial institutions do you typically partner with, and how does this help unlock additional private capital?__

__Credit Delivery - Direct and Indirect Financing__
RDF Ghana ensures capital reaches smallholder farmers through direct and indirect channels. We provide wholesale lines of credit to PFIs, mainly rural banks. We also offer direct input financing, which targets smallholder farmers organized into Outgrower Schemes and VSLAs, ensuring timely access to inputs and market linkages.

__De-risking With Credit Guarantees__
Our guarantee facility uses a 50% risk-sharing model (portfolio guarantee) to incentivize PFIs to increase lending to agriculture. This approach effectively unlocks capital for underserved borrowers by mitigating agricultural lending risks.

__Capacity-Building Through Technical Assistance__
Our Technical Assistance (TA) programs are designed to empower women and youth, strengthen the capacities of both farmers and financial institutions, and enhance environmental sustainability. Our flagship programs include:
- RDF Executive Management Essentials for RCBs (REMERB): Delivered with the National Banking College, this program closes critical knowledge gaps in corporate governance, Environmental, Social, and Governance (ESG) standards, risk management, and capital management, solely for rural banks.
- Agro Woman 360 (AW360): Holistically empowers rural women smallholder farmers through financial literacy, alternative livelihoods, and climate resilience training.
- Integrated Soil Fertility Management (ISFM): Promotes climate-smart agriculture by training farmers in input-use efficiency and sustainable soil health practices. 
 

__What would you say has been the impact of your work within the Ghanaian financial ecosystem? Feel free to share relevant examples that demonstrate the catalytic impact of our work.__

Our commitment to serving smallholder farmers has played a transformative role in strengthening rural finance and deepening Ghana’s financial ecosystem. Leveraging partnerships with PFIs and agricultural facilitators, we have deployed approximately $11 million in loans and technical assistance. These reached 30,000+ beneficiaries, including 60% women and 79% smallholder farmers. Our intervention has incentivized agriculture lending, built stronger institutions, created jobs, and scalable market opportunities: 
 
__Unlocking Capital__: Our 50% portfolio guarantee to PFIs like ABSA Bank Ghana, Kwahu Praso Rural Bank, and Agave Rural Bank have directly mitigated their risk, enabling them to collectively increase their agricultural loan portfolio. For every $1 that RDF has deployed in guarantees, we have mobilized $2.50 in private capital from our PFIs. For example, Kwahu Praso Rural Bank has increased its agriculture loan portfolio by over 50% since partnering in 2024. 
 
__Strong Institutions__: PFIs that completed our ‘REMERB’ governance training have strengthened their risk management frameworks and are better equipped to serve rural clients. 
 
__Job Creation__: While we directly reached 30,000+ beneficiaries, our interventions have supported an estimated 113,526 jobs, significantly demonstrating a catalytic effect on rural employment and livelihoods. 
 
__Scalable Models__: A strategic partnership with USAID served as a critical proof-of-concept for our transformative integrated outgrower model. What began as a pilot project with VSLAs has evolved into a scalable Outgrower Loan Scheme providing market linkages, weather insurance, and tailored financing to the smallholder farmers.

Additional positive tangible outcomes from our 2020–2024 strategic period include the following:
- 81.2% of MSMEs including agribusinesses reported higher incomes, driven by yield improvements ranging from 26% to 50%.
- Among farmers, nearly 60% achieved yield gains exceeding 50%, contributing to a 57% increase in average weekly produce sales. 
 

__Does RDF Ghana apply a gender lens when it comes to its blended finance activities? If yes, could you shed some light on how this is accomplished (metrics tracked and indicators)?__

Gender inclusion is core to our operations and is systematically integrated into the design and delivery of all our interventions. This commitment is reflected in our reach, as women account for over 60% of all RDF interventions, including 76% of TA recipients and 53% of loan beneficiaries. Building on this foundation, our flagship initiative Agro Woman 360 empowers women smallholder farmers through group structures and VSLAs. By strengthening financial literacy, business acumen, and climate resilience, the program has enabled over 50% of participating women to gain greater influence and respect within their families and communities. These efforts reinforce our mission to promote inclusive growth, reduce poverty, and build resilient livelihoods across our target communities.

__Tailored Financial Solutions__: Recognizing that one size does not fit all, we design context-specific solutions. In Northern Ghana, for example, where women dominate the shea, soya, and groundnut value chains, we introduced tailored credit facilities for Village Savings and Loans Associations (VSLAs). This directly expands finance access and strategically strengthens women's pivotal role in these critical agricultural value chains.

__Rigorous Measurement and Global Alignment__: Our approach is guided by clear metrics and global standards, including alignment with SDG 5 (Gender Equality) and the 2X Challenge Criteria. We track key performance indicators such as share of women beneficiaries across products and services, land ownership and control, and economic empowerment and decision-making power. These interventions not only promote inclusion but also serve as a powerful catalyst that enhances productivity, builds community-wide resilience, and drives systemic change within rural economies.

__As an impact-driven institution in the agriculture and renewable energy space in Ghana, what gaps/opportunities do you see in the Ghanaian financial ecosystem that blended finance can help unlock?__

Despite the progress made, agriculture and renewable energy remain underfinanced in Ghana, with high perceived risks. RDF has demonstrated that by strategically integrating capital and TA, we can prove the commercial viability of these underserved markets. We see four priority areas where blended finance can unlock transformative opportunities: 
 
__Expand Access to Finance__: A critical void exists for smallholder farmers lacking access to financing due to their small size, lack of track record, or collateral. An opportunity exists for blended finance to provide first-loss capital to de-risk the investments for impact investors. This would unlock capital to scale and create formal market linkages for many smallholder farmers. Expanding credit guarantee schemes will also encourage greater lending to these underserved sectors. 
 
__Renewable Energy Transitions__: A significant gap remains in financing renewable energy for productive use in agriculture (e.g., solar solutions for irrigation, milling, drying, storage). Grants or concessional capital can cover the high upfront costs and provide TA to de-risk the technology for both provider and end-user, which could ultimately unlock commercial debt and equity. 
 
__Climate Adaptation Tools__: There is an increasing demand for agricultural insurance, solar-powered irrigation, and climate-smart inputs. Blended finance can accelerate adaptation by providing lower-cost, longer-term capital and grants. 
 
__Data and Digital Infrastructure__: Targeted blended finance solutions can address structural weaknesses in agricultural financing, particularly the lack of reliable data, which leads to high-risk premiums. Using catalytic grants to support the development of integrated agricultural platforms could attract commercial lenders into the space.

__What does the future look like for RDF Ghana? How will your strategy and interventions evolve going forward? What role do you see yourself playing to help increase financing flows to the agriculture sector, which comparatively remains underserved?__ 
 
Transformative changes in rural economies require strong strategic collaboration. Going forward, we are looking to foster partnerships with like-minded investors, development partners, and private sector actors. Through these partnerships, we would amplify our collective impact, crowd in significant private investment, and drive the systemic changes needed to empower rural communities. Our collaborative efforts will concentrate on three strategic pillars:
 
__Build Resilient and Integrated Value Chains__: By integrating financing with targeted TA, we will strategically partner with agriculture actors, input suppliers, and off-takers to create viable models that de-risk the entire chain, ensuring access to quality inputs, training, and guaranteed markets. 
 
__Unlock Institutional Capital__: We will position ourselves as a trusted intermediary that can bundle smaller, risky agricultural loans into larger, more structured investment opportunities for institutional investors who seek impact and return, but lack the capacity to deal with fragmented, small-ticket transactions. 
 
__Champion Climate-Smart and Inclusive Finance__: We are committed to embedding climate resilience and gender inclusion at the heart of rural finance. We are looking to achieve this by:
- Scaling Proven Practices – Expanding our Integrated Soil and Fertility Management (ISFM) program to promote sustainable land use.
- Minimizing Climate Shocks – Broadening access to affordable agricultural insurance for smallholders.
- Advancing Gender Inclusion – Intensifying our targeted interventions to increase the economic participation of women and youth.
- Solar-Powered Agriculture – Focusing on solar-powered solutions for irrigation and other productive agriculture uses.

RDF Ghana Member Spotlight with Yaw Oppong

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

New report finds climate blended finance market holds steady

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

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

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

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

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

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

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

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

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

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

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

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

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

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

__MEDIA CONTACTS__ 

__Sijia Yi__ 

Head of Communications 

Convergence Blended Finance 

sijia.yi@convergence.finance 

 

__Annie Woscoboinik__ 

Communications Associate 

Climate Policy Initiative 

annie.woscoboinik@cpiglobal.org

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

CC Facility new cohort announced

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MDIF Member Spotlight with Patrice Schneider

Media Development Investment Fund Member Spotlight with Patrice Schneider

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Indo-Pacific NGO Blended Finance Accelerator launch

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

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

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

__How does Standard Chartered engage in blended finance?__

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Standard Chartered Member Spotlight with John Murton

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Impact investing needs to rediscover its catalytic edge

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

__The case for local leadership amid constrained aid flows__

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

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

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

__Persistent challenges: policy, capacity, and project preparation__

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

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

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

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

__Opportunities: coordination, partnerships, and advisory support__

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

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

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

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

__Key data findings__

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

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

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

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

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

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

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

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

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

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

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

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

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

__Convergence Delegation:__

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

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

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

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

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

__Events__

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

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