British International Investment has partnered with BlueOrchard Finance to create a fund specifically designed to unlock insurance capital and combat the climate emergency.
BII is looking to provide a substantial investment in the BlueOrchard Climate Action Mobilisation fund, which has a “unique” capital structure to use insurance investors at scale.
The fund aims to provide senior loans to banks, microfinance providers and other financial intermediaries that provide climate finance to SMEs in emerging markets.
BII chief executive, Leslie Maasdorp, said: “The only chance we have of meeting the monumental funding demands of the climate emergency is to mobilise private capital at scale.
“Today’s announcement demonstrates how British development finance, working in partnership with a leading private institution, can forge a new path in getting capital to where it is needed most.”
BlueOrchard is working to secure investments from insurance providers with the aim of a final close targeting more than $250mn.
BlueOrchard CEO, Michael Wehrle, added: “With an almost 25-year track record, BlueOrchard is a pioneer in impact investing across emerging markets. Meeting investors’ needs and enabling them to participate in impactful investments is one of our top priorities.
“We are pleased to launch this innovative mandate, specifically designed to address the requirements of insurers and other institutional investors internationally.
“With the award of this exciting mandate, we have a unique opportunity to unlock new sources of private capital for emerging markets through innovative blended finance structures.”
tom.dunstan@ft.com
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