With a total fund size of $1.111 billion, the SDG Loan Fund (“the Fund”) is one of the largest blended finance funds launched in the market to date. Conceived by AllianzGI and Dutch Development Bank FMO (Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.), the Fund benefits from multiple layers of risk protection including a $111 million first-loss investment from FMO, which is credit-enhanced with a $25 million unfunded philanthropic guarantee provided by the John D. and Catherine T. MacArthur Foundation (MacArthur Foundation) as part of the Catalytic Capital Consortium (C3)1 initiative.
The SDG Loan Fund demonstrates how blended finance can be deployed at scale to mobilize unprecedented levels of private sector investment.
