Scaling Blended Finance Mechanisms*

SDIP identifies blended finance mechanisms and instruments (i.e. guarantees, credit enhancements, and/or other structures) that can be scaled and replicated to catalyze more investments in sustainable development projects.

Objectives

  • Scale and replicate successful financial solutions that improve risk-return profiles of projects under development
  • Ensure more efficient use of donor funding to mobilize private capital by supporting proven and effective financial solutions
  • Crowd additional capital into existing mechanisms and instruments to enable more blended finance transactions

Activities

  • Convene members and stakeholders to identify and replicate effective blended finance solutions that attract greater private capital support for projects
  • Encourage public and philanthropic funders to collaborate on a limited number of well-proven blended finance solutions, which also promote standardization and reduce complexity

Examples of blended finance mechanisms and instruments 

Local Currency Guarantees

  • InfraCredit (Nigeria)

Development Finance

  • Sovereign portfolio risk transfer - Asian Development Bank
  • Synthetic securitization of non-sovereign loans - African Development Bank
  • Managed Co-Lending Portfolio Program (MCPP) - International Finance Corporation 

Green Financing Programmes

  • Africa GreenCo
  • Scaling Solar 
  • Sunref

National Programmes / Funds

  • Climate Investor One
  • Danish Climate Investment Fund
  • European Union External Investment Plan (EU EIP)

*Previously called Pooling Resources