LDC Portal - International Support Measures for Least Developed Countries - Blended finance

The Role of Blended Finance in the LDCs and the Potential for Private Sector Investment - UNCDF

MTAVARES1 — Fri, 29 Apr 2022 00:00:00 +0000

Thursday, 28 April 2022 - 8:00pm

Recording available here.

The purpose of the event was to highlight the need for blended finance and the role that donors can play through UNCDF. Potential investee companies, development finance institutions and certain donor and LDC governments participated.

From UNCDF: US$60+ Million in Commitments for UN-Affiliated Impact Investment Vehicle Announced at the Finance for Development Forum

MTAVARES1 — Thu, 28 Apr 2022 17:00:00 +0000

Full news article here: US$60+ Million in Commitments for UN-Affiliated Impact Investment Vehicle Announced at the Finance for Development Forum - UN Capital Development Fund (UNCDF)

Excerpt: "Over US$60 million has been committed from six member states and development institutions representing Canada, the United States, Norway, Luxembourg, Sweden and the Nordic states through the Nordic Development Fund—to the BUILD Fund, a blended impact investment vehicle, as well as its associated technical assistance facility, to finance small and medium-sized businesses in the world’s least developed countries (LDCs) to help achieve the Sustainable Development Goals (SDGs). The announcement of the financing commitments was made today at this year’s Finance for Development Forum (FFD) in New York.

The Bamboo-UNCDF Initiative for the Least Developed (“BUILD”) is an innovative blended impact finance vehicle designed to bring finance to small-and-medium sized enterprises (SMEs) and entities that have the potential for strong development impact in the world’s frontier markets or least developed countries. Managed by Bamboo Capital Partners, the Fund provides growth capital to businesses identified, supported and nurtured by UNCDF. The BUILDER Technical Assistance (TA) Facility is managed at arm’s length by UNCDF, which will be closely involved in pipeline generation, portfolio building, and business advisory support to businesses."

Front Page Article:

UNCDF events on finance in LDCs at the FFD Forum

MTAVARES1 — Fri, 22 Apr 2022 20:00:00 +0000

During the 2022 ECOSOC Forum on Financing for Development, UNCDF and partners will be holding side-events on Green and Climate Resilience Bonds in LDCs, Guarantee Mechanisms as Catalysts of LDC Structural Transformation and Blended finance in LDCs. More information here and in our events page.

Photo UNCDF/John Rae

Front Page Article:

FP Virtual Dialogue: Mobilizing Financing for Inclusive Development

MTAVARES1 — Mon, 18 Apr 2022 13:00:00 +0000

Tuesday, 19 April 2022 - 10:00am

The world’s least developed countries (LDCs) face a severe financing gap that has not been sufficiently covered by official development assistance (ODA) and has been compounded by the economic crisis of the COVID-19 pandemic. To date, private capital has largely stayed on the sidelines, due to underdeveloped financial industries and investor risk perceptions. Not only is the financing gap constraining LDCs’ ability to build critical infrastructure, advance social services, and recover from the pandemic, but it also impedes progress towards the UN Sustainable Development Goals (SDGs).

Governments around the world need to stimulate inclusive and resilient growth to recover from the pandemic, while at the same time addressing rising environmental and sustainability challenges. Blended finance—which combines public, donor, and private funds into the same investments—is increasingly considered a promising means of financing critical projects in least developed markets. These models provide a unique opportunity to diminish perceived risk and strengthen local markets for investment, while also relieving budgetary pressures and stimulating economic activity for governments. While there has been success with launching sustainability projects with blended finance across LDCs, more needs to be done to fill the massive financing shortfall and access to capital.

Foreign Policy, in partnership with Microsoft, will host a conversation examining the role blended finance is playing to support sustainable economic growth across LDCs. Funders and project developers will shed light on a range of projects benefiting from this collaborative financing model and the impacts this approach is having on lives and livelihoods. This timely conversation will explore strategies to close the financing gap, scale project finance, and increase investments that will expand economic opportunity across the least developed countries.

Join the conversation online with #BlendedFin4LDCs

More information: FP Virtual Dialogue: Mobilizing Financing for Inclusive Development – Foreign Policy

tags:

Finance

Blended finance