Mobilisation
The mobilisation impact is significant: the second-loss partial guarantee of USD 35m enables a fund of c. USD 750m.
| Company | Global Infrastructure Partners, a part of BlackRock |
| Sector | Multi-sector |
| Country | Multi-country |
| Total Project Cost | USD 41.4m |
| PIDG Commitment |
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| Dates of PIDG involvement |
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A paradigm shift was required in how to finance climate-resilient infrastructure in the markets that need it most. Transformational deals are needed to ensure that private capital flows at scale to build resilient economies across Africa and Asia. Innovative funding structures and first-mover partnerships can serve to demonstrate the commercial viability of the emerging market infrastructure asset class.
PIDG invested USD 6.4 million catalytic capital and provided a USD 35 million guarantee to strengthen the risk profile and participation from institutional investors in the Infrastructure Resilience Development Fund. The IRDF is a first-of-its-kind blended finance vehicle – designed in partnership with the Insurance Development Forum – to enhance natural catastrophe protection and build climate resilience in developing nations. The two PIDG instruments help create a structure that can mobilise capital at scale for sectors including clean energy, water and sanitation, transport, digital infrastructure and other climate-resilient assets.
The mobilisation impact is significant: the second-loss partial guarantee of USD 35m enables a fund of c. USD 750m.
The Fund is targeted towards climate-resilient infrastructure across many sectors including clean energy, water and sanitation, e-transportation and digital connectivity.
The fund’s innovative structure is intended to be replicable, establishing a model for future fund-level credit enhancement that can successfully channel vast pools of private institutional capital into emerging markets infrastructure.
