DFI Working Group on Blended Concessional Finance for Private Sector Projects: Joint Report 2021

There has been substantial growth on the use of blended concessional finance across DFIs to promote private sector participation in developing countries. The members of the DFI Working Group worked over the last year to (i) update the blended concessional finance data; (ii) share knowledge and experience on the use of blended concessional finance; and (iii) coordinate interactions with other working groups that address blended concessional finance issues.

The report provides key findings on the use on blended concessional finance across DFIs in 2020. DFIs financed projects with a total volume of over $11.2 billion using various blended concession finance solutions. Total concessional funds committed to these projects were approximately $1.6 billion. This is slightly higher compared to the 2019 volume of $1.4 billion. The largest sector for DFI concessional commitments was infrastructure. The banking and finance sector was prominent in upper and lower middle-income countries, while other sectors comprising agribusiness, health, and manufacturing were largely in low and lower middle-income countries. Similar to previous years, lower middle-income countries had the largest share of concessional funds and had the largest amount of DFI financing in projects.