2025
Resource description: This practitioner guide to blended finance explores how to scale private capital mobilization in EMDEs by addressing risk perceptions, structural barriers, and market enablers.
Key insights:
• Challenges perceptions of high risk in EMDEs, citing comparable default rates (3.5%) and strong recovery rates (72%)
• Shows how guarantees, hedging, and modular structures can reduce currency, complexity, and liquidity risks
• Describes how project aggregation and securitization help build investible pipelines and lower transaction costs
• Notes improved availability of risk and ESG data, but highlights need for better coordination and standardized reporting
• Recommends aligning stakeholder mandates and using templates to streamline investment and reduce friction
Why this matters:
Private capital flows to EMDEs remain low despite the need. This resource addresses perception gaps and outlines practical steps to unlock finance for climate and development.
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