Results - 6 of 6 items found
Oct 16, 2019
IFC co-chairs a working group of more than 20 development finance institutions (DFIs) and has been working with other multilateral development banks and DFIs to promote the adoption of the blended finance principles to ensure a strict and disciplined approach to blended concessional finance to avoid market distortions. The working group has published annual reports since 2017:
Sep 30, 2019
In new and challenging markets, blended concessional finance—the combining of concessional funds with other types of finance, on commercial terms—is increasingly used to mobilize capital and accelerate high impact private sector investments. However, a relatively new approach for the provision of concessional capital for use by development finance institutions is emerging—the “returnable capital” model. With this new model, principal, interest, and other amounts are repaid to the original provider of funds (usually a government) on a regular basis. Because this can reduce the impact on donor government budgets, more government funds could become available for collaboration with the private sector. This note explores the effects of this new model on incentives, accounting, resource management, and reporting.
English | 8 Pages - September - Note 72 | IFC 2019
Jul 15, 2019
IFC’s Blended Finance Unit blends funds from donor partners alongside IFC’s own in order to catalyze investments that would not otherwise happen because of market barriers. These funds can be used to undertake high-risk, high-reward projects that have strong potential to improve lives and reduce poverty.
Mar 29, 2019
Blended concessional finance, the combination of concessional funds with other types of finance on commercial terms, has great potential to mobilize capital and accelerate high-impact private sector investments in new and challenging markets. Yet full development of these efforts requires strong governance. IFC has been working to develop a robust governance system for blended concessional finance, guided by the Development Finance Institutions Enhanced Principles, a set of principles that employ special operating procedures and checks and balances when using blended concessional finance for private sector projects. These institutions need to learn from each other to ensure good governance, as the sharing of experiences is crucial to building global trust in the use of concessional funds. And to work well, governance structures need to be transparent and focus on solving potential conflicts of interest.
English | 8 Pages - March - Note 66 | IFC 2019
Nov 5, 2018
Blending funds from private investors with concessional funds from donors and philanthropic sources has a strong potential to scale up investment in lower-income countries and thereby accelerate development. The use of blended concessional finance is already prevalent in lower-income countries representing over 70 percent of IFC’s commitments. Recent strategies from development finance institutions including the World Bank Group indicate that the relative share of lower-income countries in the global mix of blended concessional finance will increase further. Scaling up engagements in lower-income countries requires solutions tailored to local contexts, as well as the deployment of the whole spectrum of development finance tools, including advisory work, regulatory dialogue and reform, and a mix of blending instruments encompassing both pricing and risk mitigation features.
English | 6 pages - November - Note 60 | IFC 2018
Apr 17, 2018
At the heart of IFC’s approach to blended finance are efforts to create and help sustain private markets with strong development impact. This note explores the role of blended finance in creating markets and looks at lessons from three blended finance projects and structures—and how each contributed to the creation of markets that are scalable, sustainable, and resilient.
English | 6pages - April - Note 51 - IFC 2018