Using Blended Concessional Finance to Invest in Challenging Markets : Economic Considerations, Transparency, Governance, and Lessons of Experience
Blended concessional finance is the combination of concessional funds from development partners with commercial finance from development finance institutions (DFIs) and private sources. These resources can be used strategically to help mitigate ris...
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| Format: | Report |
| Language: | English |
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International Finance Corporation, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/undefined/963951613728911652/Using-Blended-Concessional-Finance-to-Invest-in-Challenging-Markets-Economic-Considerations-Transparency-Governance-and-Lessons-of-Experience http://hdl.handle.net/10986/36262 |
| Summary: | Blended concessional finance is the
combination of concessional funds from development partners
with commercial finance from development finance
institutions (DFIs) and private sources. These resources can
be used strategically to help mitigate risk in challenging
emerging markets and attract private investment where it
otherwise would not go. It can be an important source of
finance to help reach the Sustainable Development Goals
(SDGs) and address the economic challenges brought on by
Coronavirus (COVID-19). This report examines IFC’s two
decades of experience supporting pioneering projects with
blended concessional finance. The report addresses issues
such as why and when concessional finance is appropriate to
support private sector projects; the key transparency,
access, and governance processes required to implement
projects efficiently and effectively; the principles for
selecting and structuring projects; how to use blended
concessional finance to invest in lower-income countries;
and the different ways of structuring concessional finance
facilities used by DFIs. |
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