DFI Working Group on Blended Concessional Finance for Private Sector Projects: Joint Report 2020

Institutional Document | December 2020
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This fourth joint report from DFIs on the use of concessional blended finance for private sector projects provides an update on the core outcomes of work conducted in 2019.

Blended concessional finance is a valuable tool to unlock untapped investment into sustainable development. The increasing use of concessional funds blended with DFI’s own financing and that of others on commercial terms has brought the DFIs together to (i) develop common standards for implementation of blended concessional finance projects; (ii) provide transparent, comprehensive and consistent data on their blended concessional finance activities; and (iii) discuss and review the merits and adequacy of existing approaches to blended concessional finance activities. The ultimate objective of this work, with a distinct focus on private sector operations, is to increase development impact, crowd-in private investments while ensuring minimum concessionality, and enhance trust and transparency for the use of blended concessional finance from DFIs without distorting markets. It will also share and promote the use of best practices in blended concessional finance implementation by other market players. Over the last year, members of the DFI working group worked to (i) update the DFI blended concessional finance data to 2019; (ii) share knowledge and experience on the use of blended concessional finance, including updates on program growth and innovation, and improvements in governance arrangements with respect to blended concessional finance and the Enhanced Principles; and iii) coordinate interactions with other working groups that address blended concessional finance issues.

Contents

  • Executive Summary
  • Introduction and Context
  • Analysis of Private Sector Blended Concessional Finance Data from Development Finance Institutions
  • Update on Programs, Governance, and Outreach
  • Next Steps
  • Annexes

Additional Details

Type
Series
Subjects
  • Private sector development
Pages
  • 46

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