Delivering on the Sustainable Development Goals (SDGs)—an ambitious agenda for improving people’s lives and the planet’s future by 2030—requires more resources than are currently devoted to development.
In fact, the annual investment gap for meeting those goals is $2.5 trillion per year, according to United Nations estimates. Blended finance is a strategic tool to bridge that gap by catalyzing private capital towards projects with a high development impact.
Blended finance is the targeted use of concessional funding in high-impact projects in which actual or perceived risks are too high for commercial finance alone. For instance, a project may be sound economically but struggle to access commercial capital because of lack of familiarity in a given technology, limited market track record, uncertain revenue stream or inadequate contractual arrangements
Canadian Climate Fund
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with IDB
Invest
With over $800 million of donor funds under management for blended finance, IDB Invest has a long-standing expertise in channeling partners’ concessional resources to the private sector in Latin America and the Caribbean.
As an institution, we rely on strong internal controls and dedicated teams that ensure a disciplined, efficient and high-impact use of our partners’ concessional resources.
Publications
Loans
As a strategic lender in the region, we use our loans to open up new possibilities for companies to add value, take risks and test new business models.
Capital Markets
By providing bridge loans, partial credit guarantees and other products, we strengthen companies’ ability to issue debt securities.
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