The Why and How of Blended Finance : Recommendations to Strengthen the Rationale for and Efficient Use of Concessional Resources in Development Finance Institutions’ Operations
Blended concessional finance (BF), the use of catalytic capital from public or philanthropic sources to increase private sector investment—is becoming an important instrument to support the 2030 Agenda for Sustainable Development. Together with oth...
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International Finance Corporation, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/856201613568586386/The-Why-and-How-of-Blended-Finance http://hdl.handle.net/10986/35169 |
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okr-10986-351692021-04-23T14:02:17Z The Why and How of Blended Finance : Recommendations to Strengthen the Rationale for and Efficient Use of Concessional Resources in Development Finance Institutions’ Operations Mutambatsere, Emelly Schellekens, Philip BLENDED FINANCE DEVELOPMENT FINANCE INSTITUTION CONCESSIONAL FINANCE CONCESSIONALITY RISK MANAGEMENT Blended concessional finance (BF), the use of catalytic capital from public or philanthropic sources to increase private sector investment—is becoming an important instrument to support the 2030 Agenda for Sustainable Development. Together with other Development Finance Institutions (DFIs), IFC has been at the forefront of developing and upholding high standards as an implementing entity of concessional resources. Building on these standards, this paper offers recommendations to further strengthen the rationale for and efficient use of blended concessional resources. Central among these is the need to unpack better the rationale for BF, which requires justifications for development impact, additionality and the use of concessionality. The paper discusses ways to deploy concessional finance more efficiently once the rationale is correctly identified and articulated. It argues that the Coronavirus (COVID-19) pandemic not only raises the urgency to deploy BF efficiently and effectively, it also represents an exceptional circumstance to consider the use of BF in portfolio. 2021-02-23T20:18:09Z 2021-02-23T20:18:09Z 2020-11 Working Paper http://documents.worldbank.org/curated/en/856201613568586386/The-Why-and-How-of-Blended-Finance http://hdl.handle.net/10986/35169 English CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo International Finance Corporation International Finance Corporation, Washington, DC Publications & Research Publications & Research :: Working Paper |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
BLENDED FINANCE DEVELOPMENT FINANCE INSTITUTION CONCESSIONAL FINANCE CONCESSIONALITY RISK MANAGEMENT |
| spellingShingle |
BLENDED FINANCE DEVELOPMENT FINANCE INSTITUTION CONCESSIONAL FINANCE CONCESSIONALITY RISK MANAGEMENT Mutambatsere, Emelly Schellekens, Philip The Why and How of Blended Finance : Recommendations to Strengthen the Rationale for and Efficient Use of Concessional Resources in Development Finance Institutions’ Operations |
| description |
Blended concessional finance (BF), the
use of catalytic capital from public or philanthropic
sources to increase private sector investment—is becoming an
important instrument to support the 2030 Agenda for
Sustainable Development. Together with other Development
Finance Institutions (DFIs), IFC has been at the forefront
of developing and upholding high standards as an
implementing entity of concessional resources. Building on
these standards, this paper offers recommendations to
further strengthen the rationale for and efficient use of
blended concessional resources. Central among these is the
need to unpack better the rationale for BF, which requires
justifications for development impact, additionality and the
use of concessionality. The paper discusses ways to deploy
concessional finance more efficiently once the rationale is
correctly identified and articulated. It argues that the
Coronavirus (COVID-19) pandemic not only raises the urgency
to deploy BF efficiently and effectively, it also represents
an exceptional circumstance to consider the use of BF in portfolio. |
| format |
Working Paper |
| author |
Mutambatsere, Emelly Schellekens, Philip |
| author_facet |
Mutambatsere, Emelly Schellekens, Philip |
| author_sort |
Mutambatsere, Emelly |
| title |
The Why and How of Blended Finance : Recommendations to Strengthen the Rationale for and Efficient Use of Concessional Resources in Development Finance Institutions’ Operations |
| title_short |
The Why and How of Blended Finance : Recommendations to Strengthen the Rationale for and Efficient Use of Concessional Resources in Development Finance Institutions’ Operations |
| title_full |
The Why and How of Blended Finance : Recommendations to Strengthen the Rationale for and Efficient Use of Concessional Resources in Development Finance Institutions’ Operations |
| title_fullStr |
The Why and How of Blended Finance : Recommendations to Strengthen the Rationale for and Efficient Use of Concessional Resources in Development Finance Institutions’ Operations |
| title_full_unstemmed |
The Why and How of Blended Finance : Recommendations to Strengthen the Rationale for and Efficient Use of Concessional Resources in Development Finance Institutions’ Operations |
| title_sort |
why and how of blended finance : recommendations to strengthen the rationale for and efficient use of concessional resources in development finance institutions’ operations |
| publisher |
International Finance Corporation, Washington, DC |
| publishDate |
2021 |
| url |
http://documents.worldbank.org/curated/en/856201613568586386/The-Why-and-How-of-Blended-Finance http://hdl.handle.net/10986/35169 |
| _version_ |
1764482471637811200 |